Barclays Maintains an 'Overweight' on Cypress Sharpridge (CYS); Yield Outlook Still Attractive with Modest Yield Compression
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Price: $11.44 -0.44%
Rating Summary:
9 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
9 Buy, 8 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade CYS Now!
Barclays maintains an 'Overweight' on Cypress Sharpridge (NYSE: CYS) price target of $15.00.
Barclays analyst says, "On the heels of another strong quarter and the announcement of its board's decision to internalize management, a very shareholder friendly move in our view, CYS management indicated on the earnings call that as they redeploy proceeds from prepayments into the current spread environment, they expect returns to migrate to the mid-teens, which would pressure the current dividend yield."
"We were not modeling the type of spread compression implied by management and are lowering our 2011 and 2012 EPS estimates to $2.40 and $2.23 from $2.61 and $2.62, respectively, which is consistent with a reversion of the ROE and yield to about 17%. Those returns would still be above the median for its agency mortgage REIT peers, however, so we continue to believe the stock is an attractive value trading at only 1.04x book and an 18.6% yield..."
For more ratings news on Cypress Sharpridge click here and for the rating history of Cypress Sharpridge click here.
Shares of Cypress Sharpridge closed at $12.93 yesterday, with a 52 week range of $11.89-$14.25.
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Barclays analyst says, "On the heels of another strong quarter and the announcement of its board's decision to internalize management, a very shareholder friendly move in our view, CYS management indicated on the earnings call that as they redeploy proceeds from prepayments into the current spread environment, they expect returns to migrate to the mid-teens, which would pressure the current dividend yield."
"We were not modeling the type of spread compression implied by management and are lowering our 2011 and 2012 EPS estimates to $2.40 and $2.23 from $2.61 and $2.62, respectively, which is consistent with a reversion of the ROE and yield to about 17%. Those returns would still be above the median for its agency mortgage REIT peers, however, so we continue to believe the stock is an attractive value trading at only 1.04x book and an 18.6% yield..."
For more ratings news on Cypress Sharpridge click here and for the rating history of Cypress Sharpridge click here.
Shares of Cypress Sharpridge closed at $12.93 yesterday, with a 52 week range of $11.89-$14.25.
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