UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Hatteras Financial

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Hatteras Financial Corp. (NYSE: HTS), but slightly lowered its price target from $31.50 to $31.00.Deutsche Bank noted, “Valuation more than reflects lower dividend outlook. Q3 results were mixed, with spreads narrowing more than we expected, but BV increasing by 7.8%. While we are reducing our estimates and expect the div to be cut to 70c in 4Q, we believe this is more than reflected in the valuation (shares at 11% discount to 9/30 BV). Given the attractive valuation and our expectations of 2H13 earnings benefitting from swap maturities in 2Q13, we are maintaining our Buy rating.”Hatteras Financial Corp. closed on Tuesday at $26.33.