National Securities Maintains Buy On Two Harbors Investment, Adjust Estimates

National Securities reiterates its Buy rating on Two Harbors Investment (NYSE: TWO) as it adjusts fourth quarter estimates for the company.

National Securities says, "We are adjusting our Q4'11 and 2012 Core EPS estimates from $0.54 to $0.41 for Q4'11 and from $2.20 to $1.76 for 2012. We take into account 1) lower spreads on Agency Mortgage-Backed Securities (MBS) and 2) a less aggressive allocation to high-yielding non-Agency MBS. We maintain our BUY rating as we expect that TWO may generate a $1.75 dividend in 2012 (or a 19% dividend yield)."

TWO closed at $9.40 per share on Thursday.