UPDATE: Sterne Agee Upgrades Two Harbors Investment on Multiple Positive Factors

In a report published Thursday, Sterne Agee analyst Henry J. Coffey Jr. upgraded the rating on Two Harbors Investment TWO from Neutral to Buy, and raised the price target from $10.00 to $10.25. In the report, Sterne Agee noted, “We are increasing our rating from Neutral to Buy and raising our price target from $10 to $10.25. Our Buy rating is based principally on two factors: 1) the higher returns and improved core EPS likely to be generated by the company's MSR investing and 2) TWO's success at protecting and preserving book value.” Two Harbors Investment closed on Wednesday at $9.47.