UPDATE: Jefferies Downgrades Western Asset Mortgage Capital to Hold, Reiterates $22 PT on Valuation

In a report published Friday, Jefferies analyst Daniel Furtado downgraded the rating on Western Asset Mortgage Capital

from Buy to Hold, but reiterated the $22.00 price target. In the report, Furtado noted, “Since WMC's IPO in May 2012, the stock has generated a total return of approximately 34%, which includes dividends and share price appreciation. With the shares trading over our price target and our outlook that rates are likely to increase over the next 12-months (pressuring Agency asset prices in the process), we are downgrading the shares to Hold.” Western Asset Mortgage Capital closed on Thursday at $23.52.