BofA/Merrill Lynch Upgrades Invesco Mortgage Capital (IVR) to Buy, Hatteras Financial (HTS) to Neutral

BofA/Merrill Lynch upgraded Invesco Mortgage Capital (NYSE: IVR) from Neutral to Buy and Hatteras Financial (NYSE: HTS)
from Sell to Neutral with a price target of $19 on both.

Analyst Kenneth Bruce said with mREITs stocks already reflecting a dose of the earnings headwinds, they think there are a few good values in residential mREITs.

"Combined with a healthy dividend and we find each incrementally more compelling," the analyst said. "Given the weakness in mREITs generally, if rates reverse course (go lower) then tactical longs in agency mREITs are a good trade, in our view, though we think the longer-term risk of rising rates warrants some caution to timing trades."

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

Shares of Invesco Mortgage Capital closed at $16.03 yesterday.

You May Also Be Interested In

• JPMorgan Upgrades Dow Inc. (DOW) to Overweight
• NOV Inc (NOV) Tops Q1 EPS by 3c; offers guidance
• JPMorgan Upgrades STO Express Co Ltd (002468:CH) to Neutral