UPDATE: Deutsche Bank Lowers PT on Ellington Residential Mortgage REIT Following 2Q Core EPS Miss
In a report published Thursday, Deutsche Bank analyst Stephen Laws reiterated a Hold rating on Ellington Residential Mortgage REIT (NYSE: EARN), but lowered the price target from $19.25 to $16.75.
In the report, Deutsche Bank noted, “While core EPS were 5c below our estimate due to lower leverage and BV declined 5.5%, we believe BV is likely to be viewed as better than expected given some peers reported BV declines of as much as 21% during 2Q. While we are reducing our estimates, we expect 2H core EPS to benefit from higher leverage and a higher mix of non-agency MBS. In August, EARN authorized a $10m stock repurchase plan. We are cutting our target to $16.75, which is based on 90% of BV (down from 100%). Maintain Hold given the valuation.”
Ellington Residential Mortgage REIT closed on Wednesday at $15.75.
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