UPDATE: MLV & Co Reiterates Hold Rating, Raises PT on Dynex Capital on Mixed Factors

In a report published Thursday, MLV & Co analyst Richard Eckert reiterated a Hold rating on

, and raised the price target from $9.30 to $9.35. In the report, MLV & Co noted, “Dynex reported a largely in-line quarter for the 3 months ended June 30th, 2014. Core EPS of $0.26 matched the Street consensus and exceeded our own estimate by a penny. The upside, vs. our expectation, was mostly the result of a lower-than-anticipated cost of funds. We have increased our estimates of Core EPS for 2014 and 2015 to reflect the upside in 2Q14, lower hedging costs, and the belief that oversupply conditions in the repo markets will continue for several quarters. However, we have left our DPS estimates as they were and continue to rate DX shares a Hold—notwithstanding a total return potential that exceeds 20% at current market values.” Dynex Capital closed on Wednesday at $8.36.