UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on American Capital Mortgage Investment on Book Value Estimates
In a report published Wednesday, Deutsche Bank reiterated its Buy rating on American Capital Mortgage Investment (NASDAQ: MTGE), but lowered its price target from $29.50 to $27.75.
Deutsche Bank noted, “On February 12, MTGE priced a secondary offering of 20 million shares, raising approximately $505 million in net proceeds. Given management's comments we believe BV is likely down by 2% since yearend. We estimate pro forma post-deal book value is roughly $25.25 per share, down from $25.74 per share at 12/31.”
American Capital Mortgage Investment closed on Tuesday at $25.70.
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