UPDATE: Deutsche Bank Lowers PT on Javelin Mortgage Investment on Good 4Q EPS
In a report published Friday, Deutsche Bank analyst Stephen Laws reiterated a Buy rating on Javelin Mortgage Investment Corp. (NYSE: JMI), but slightly lowered the price target from $22.00 to $21.75.
In the report, Laws noted, “JMI's 4Q EPS beat our estimate primarily due to a wider net interest spread. We are increasing our 2013 estimates, as we expect earnings to benefit from an increasing mix of non-agency MBS. We are trimming our PT to $21.75 from $22 given YE BV being slightly below our estimate. Reiterate Buy. 4Q core EPS was above our 47c estimate mainly due to wider-than-expected portfolio spread (236bps vs. 160bps est.) and slightly higher leverage (7.7x vs. 7.5x est.). 4Q GAAP EPS of 89c benefitted from unrealized gains on non-agency MBS. Given 4Q taxable income of 73c versus 46c of dividends paid during the quarter, JMI had 27c of undistributed taxable income (UTI) at YE. BVPS ended the year at $19.74, slightly below our $20 post-IPO BV estimate. JMI previously declared monthly dividends totaling 69c for 1Q and 2Q.”
Javelin Mortgage Investment Corp. closed on Thursday at $19.39.
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