Deutsche Bank Downgrades American Capital Mortgage (MTGE) to Hold

March 7, 2014 6:52 AM EST
Get Alerts MTGE Hot Sheet
Price: $16.35 -0.61%

Rating Summary:
    1 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Deutsche Bank downgraded American Capital Mortgage (NASDAQ: MTGE) from Buy to Hold with a price target of $20.50.

Analyst Stephen Laws commented, "Given shares of MTGE are trading roughly 1% below our price target, which is based on 95% of 12/31 book value, we are downgrading MTGE to a Hold from a Buy. We believe dividends will drive the majority of returns from current levels. Given investor concerns of higher interest rates, we believe it is unlikely that shares of MBS managers with portfolios that consist largely of agency MBS will trade at or above book value in 2014. The current DB forecast is for ten-year treasury rates to reach 4% by year end, and we believe shares of MBS managers will continue to trade at a discount to book value in a rising rate environment."

For an analyst ratings summary and ratings history on American Capital Mortgage click here. For more ratings news on American Capital Mortgage click here.

Shares of American Capital Mortgage closed at $20.24 yesterday.

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