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UPDATE: Morgan Stanley Reiterates on Cherry Hill Mortgage Investment on Better Book Value, Solid Earnings

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In a report published Tuesday, Morgan Stanley analyst Cheryl M. Pate reiterated an Equal-Weight rating on Cherry Hill Mortgage Investment (NYSE: CHMI), and raised the price target from $20.00 to $21.00.

In the report, Morgan Stanley noted, “Cherry Hill's reported 50c in core earnings for its first operating quarter, and beat our expectations on solid net interest income. Management remains focused on its excess MSR and agency MSR strategies. In the first quarter, Cherry Hill agreed to purchase ~$76.8m in excess servicing UPB from Freedom Mortgage. While 1Q13TD volumes are light of our prior forecast ($1.4B), the purchases show execution on further excess MSRs and we expect volumes to increase on a go‐forward basis.

"Additionally, management is planning to pursue the appropriate licenses and approvals within its taxable REIT structure to be able to own MSRs outright, a positive in our view.”

Cherry Hill Mortgage Investment closed on Monday at $18.75.

Latest Ratings for CHMI

May 2016CitigroupMaintainsBuy
Mar 2016BarclaysMaintainsEqual-weight
Nov 2014CitigroupMaintainsBuy

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