UPDATE: Wunderlich Securities Upgrades Arlington Asset Investment to Buy on Improved Earnings Outlook
Wunderlich Securities upgraded Arlington Asset Investment (NYSE: AI) from Hold to Buy and raised the price target from $23.50 to $27.00.
Wunderlich Securities said, "Arlington Asset accretively raised about $83 million (assuming exercise of the overallotment option) in equity capital in an offering that priced on March 8, 2013. We estimate this raised tangible book value to about $23 per share from $22.95 at year end, and that further appreciation in assets and retained earnings could drive book value to $25.75 by year end 2013. AI can deploy the incremental capital into credit sensitive assets that benefit from the ongoing recovery in housing fundamentals, driving higher earnings. With prospects for an 18% total return to our revised price target, we are raising our rating from Hold to Buy."
Arlington Asset Investment closed at $25.73 on Monday.
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