UPDATE: Deutsche Bank Downgrades Armour Residential on Valuation, Equity Offering

Deutsche Bank downgraded Armour Residential

from Buy to Hold and lowered the price target from $8.30 to $6.75. Deutsche Bank commented, "On February 13, ARR reported an estimated current BVPS range of $6.70 and $6.76, down 13% from the last reported BVPS of $7.77 at 9/30. Given the book value range and yesterday's equity offering, we estimate pro forma post-deal book value of $6.73 per share. As a result of the BVPS decline and a reduction in our BV premium from 5% to 0%, we are reducing our target to $6.75 per share from $8.30 per share. Given our new target relative to the current valuation, we are reducing our rating to Hold." Armour Residential closed at $7.09 on Thursday.