UPDATE: Credit Suisse Initiates Ellington Financial at Outperform on Multiple Positive Factors

In a report published Tuesday, Credit Suisse analyst Douglas Harter initiated coverage on Ellington Financial EFC with an Outperform rating and $26.50 price target.

In the report, Credit Suisse noted, “We are initiating on Ellington Financial LLC (EFC) with an Outperform rating and a $26.50 target price. We see 18% of total return potential over the next year coming largely from the 12% current dividend yield. We see the combination of the active management plus the plans to broaden out the asset base as attractive ways to continue to produce economic returns. EFC's investment focus is on credit assets, with the portfolio primarily focused on non-Agency RMBS as of today. We expect EFC to increase its allocations toward CMBS as well as residential loans, both legacy and new issue.”

Ellington Financial closed on Friday at $25.14.