Stifel Nicolaus Maintains Invesco Mortgage Capital (IVR) Hold Rating
March 19, 2010 8:46 AM
Stifel Nicolaus analysts Michael R. Widner and Sean Tillman maintained their Hold rating for shares of Invesco Mortgage Capital Inc. (NYSE: IVR).
Widner and Tillman noted that Invesco Mortgage Capital Inc. lowered its dividend from $1.05 per share in the previous quarter to 78 cents, which was slightly below their estimate of 80 cents per share.
The analysts said that the negative impact of the Fannie and Freddie buyouts will likely cause dividends to fall further for the first two quarters of the year, before starting to recover.
The Stifel Nicolaus analysts wrote, "with the stock currently trading at 1.13x book with a 13.5% yield we find it appealing but valued slightly rich relative to other mortgage REITs...We would find the valuation more in line with peers and would be more positive around $22, all else being equal."
