UPDATE: Oppenheimer Initiates Javelin Mortgage Investment at Outperform on Industry Outlook

Oppenheimer initiated coverage on Javelin Mortgage Investment JMI with an Outperform rating and a $21 price target. Oppenheimer said, "While dividends have declined over the past few months at many mortgage REITs following the Federal Reserve's QE3 program, we still believe the industry will generate attractive yields over the next two years. Longer-term market opportunities exist for the MREITs (mortgage REITs) to provide private capital for the mortgage finance industry as the GSEs reduce the size of their portfolios and regulatory changes continue to reshape the industry. In our view, Javelin Mortgage's hybrid operating model positions the company to take advantage of these market opportunities as JMI invests in non-agency MBS." Javelin Mortgage Investment closed at $19.40 on Wednesday.