Jefferies Reiterates Hold, $2.60 PT on Chimera Investment Corporation Post May Credit Run

Jefferies maintains its coverage view on Chimera Investment Corporation

with a Hold rating and a price target of $2.60. Jefferies comments, "Cash flows for May were lower and it appears 2Q12 subordinate losses will trend higher than 1Q12 losses. The 30-day delinquency bucket remained static M/M. Quarter-to-date cash flows of just over $34M are in line with 1Q12 performance. …Our $2.60 price target equates to approximately 0.95x our NTM projection for CIM's economic book value." CIM closed at $2.72 on Tuesday.