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UPDATE: Wunderlich Securities Upgrades Invesco Mortgage Capital as Nimble Portfolio Positioning Increases Potential for Value Creation

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In a report published Monday, Wunderlich Securities analyst Merrill Ross upgraded the rating on Invesco Mortgage Capital (NYSE: IVR) from Hold to Buy, and raised the price target from $17.00 to $18.00.

In the report, Wunderlich Securities noted, “Although Invesco (IVR) reported 4Q13 EPS that fell short of its dividend, we think that management has (and will likely continue) to reposition the portfolio to optimize earnings, support dividends, and minimize the downside to BVPS. It is not easy to shorten duration in a rising rate environment, but IVR was able to accomplish that, as was evidenced in core results. True, BVPS declined by almost 14% YoY, but on a linked quarter basis, it improved. We think this externally managed company can leverage the vast resources of its sponsor to source and monitor residential and commercial mortgage assets as private, non-bank capital plays a vital role in the evolving housing finance market. We are upgrading the shares to Buy, and raising our target to $18, which approximates BVPS.”

Invesco Mortgage Capital closed on Friday at $16.39.

Latest Ratings for IVR

Jul 2017Keefe Bruyette & WoodsUpgradesMarket PerformOutperform
Feb 2017NomuraDowngradesBuyNeutral
Aug 2016BarclaysMaintainsEqual-Weight

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Posted-In: Merrill Ross Wunderlich SecuritiesAnalyst Color Upgrades Analyst Ratings


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