UPDATE: Deutsche Bank Raises PT to $13.50 on Two Harbors Investments on Dividends, Share Offering

Deutsche Bank maintained Two Harbors Investments

with a Buy rating and raises the price target from $12.75 to $13.50. Deutsche Bank analyst Two Harbors noted, "TWO declared 1Q regular 32c dividend and a special stock dividend to distribute its ownership of SBY. Additionally, TWO announced a secondary offering of 50m shares, which we expect to generate net proceeds of roughly $762m. We are increasing our '13 and '14 estimates given the better than expected 1Q dividend and our new portfolio return expectations. We are increasing our target to $13.50, which is based on a 25% premium to our postdeal, post-SBY BVPS estimate of $10.80 per share. Given the total return expectations and our new target, we are maintaining our Buy rating." Two Harbors Investments closed at $13.87 on Monday.