UPDATE: Compass Point Upgrades American Capital Mortgage to Buy on Strong Quarter

Compass Point raised its rating on American Capital Mortgage

from Neutral to Buy with a higher $27 price target. Compass Point said, "MTGE announced the strongest quarter since the Company's IPO in terms of shareholder value creation. During the quarter, MTGE generated an annualized economic return of 72% through a $3.13 per share increase in book value per share and $0.90 in dividends. ... Considering the strong returns, stable dividend outlook and the current valuation of shares, we believe the risk versus reward is positively skewed in investors favor. If achieved, our price target represents a total return opportunity of 22.7%." American Capital Mortgage closed at $24.93 on Wednesday.