UPDATE: Citigroup Reiterates on Ellington Residential Mortgage REIT on Model Update

In a report published Friday, Citigroup analyst Donald Fandetti reiterated a Neutral rating on

, but lowered the price target from $20.00 to $17.00. In the report, Citigroup noted, “We are updating our model and adjusting our price target to reflect Q4'13 results. EARN reported GAAP EPS of -$0.01 and core EPS of $0.74 in Q4'13. Book value was down 2.7% to $18.29 from $18.80. The Q4 dividend of $0.50 equates to an annualized yield of 12% on the current share price. We are keeping our 2014/2015 estimates unchanged and introduce 2016 of $2.20. We are lowering our price target to $17 on 0.9x book value to reflect lower comp valuations and potential for more volatile interest rate environment.” Ellington Residential Mortgage REIT closed on Thursday at $16.50.