UPDATE: Jefferies Initiates PennyMac Mortgage Investment Trust at Buy on Residential Mortgage Market Reform

In a report published Friday, Jefferies analyst Daniel Furtado initiated coverage on PennyMac Mortgage Investment Trust PMT with a Buy rating and $23.00 price target.

In the report, Jefferies noted, “We believe PMT will be a direct beneficiary of the reformation occurring in the residential mortgage market. Unlike most mortgage REITs, PMT is not a levered MBS play. Rather, the company is oriented toward the creation of investments or investment securities. We anticipate this key differentiating factor will lead to higher valuation and better investment returns over the long-term when compared to levered MBS REITs.”

PennyMac Mortgage Investment Trust closed on Thursday at $21.11.