UPDATE: Bank of America Reiterates on Hatteras Financial Following Good Q4 '13 Results
In a report published Tuesday, Bank of America analyst Kenneth Bruce reiterated an Underperform rating on Hatteras Financial (NYSE: HTS), and raised the price target from $16.00 to $17.00.
In the report, Bank of America noted, “Our $17 price objective is based on a 0.9x P/BV multiple to our pro-forma BV estimate in a rising rate environment. We expect HTS to continue to trend toward BV as interest income stabilizes. HTS' focus on relatively low yielding ARM investments implies it may be more exposed to more yield compression than its peer. That said, HTS' focus on ARMs may provide relatively high BV stability if rates continue to rise.”
Hatteras Financial closed on Monday at $19.76.
Latest Ratings for HTS
|Sep 2014||Bank of America||Upgrades||Underperform||Neutral|
|Sep 2014||Compass Point||Upgrades||Neutral||Buy|
|Jul 2014||Deutsche Bank||Maintains||Hold|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.