UPDATE: Deutsche Bank Reiterates Hold Rating, Lowers PT on Capstead Mortgage Corporation Following Below-Expectations 3Q Results

In a report published Thursday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on Capstead Mortgage Corporation CMO, but lowered the price target from $12.25 to $11.75. In the report, Deutsche Bank noted, “Expect 4Q earnings to benefit from slower prepayments. CMO's 3Q results were below expectations, as core EPS missed our estimate by 5c and BV declined 3.5% sequentially to $12.35 per share. While we are reducing our estimates, we expect 4Q earnings to increase sequentially given slower prepayment speeds. Given the sequential BV decline, we are reducing our price target to $11.75 per share. Given our portfolio return estimates and the valuation relative to our new target, we are maintaining our Hold rating.” Capstead Mortgage Corporation closed on Wednesday at $12.11.