UPDATE: Deutsche Bank Initiates ZAIS Financial at Buy; IPO Proceeds to Acquire Whole Loans

Deutsche Bank initiated ZAIS Financial

with a Buy rating and a $23.50 price target. Deutsche Bank said, "We are initiating coverage of ZFC with a Buy rating, as we expect ROEs to expand from new investments in non-agency MBS and residential whole loans. While proceeds may be initially invested in agency MBS, we expect the company to allocate up to 60% of its capital to support investments in whole loans. We are initiating a target price of $23.50 per share, and we expect shares to move towards our target as the portfolio mix shifts towards the target allocation." ZAIS Financial closed at $20.02 on Thursday.