Wells Fargo Upgrades MFA Mortgage (MFA) to Outperform

Wells Fargo upgraded MFA Mortgage (NYSE: MFA) from Market Perform to Outperform as part of a broader call on the mREIT sector.

The firm comments, "While there are a lot of concerns and rumors in the market from Demarco's departure, removal of the home interest deduction, the Boxer-Menendez bill, retail concerns of higher tax rates (mREITs taxed as ordinary income), NIM pressures in perpetuity, 30-year mortgage interest rates reaching 2.5%, QE4 (fourth round of quantitative easing), along with the fiscal cliff, we believe the sector is oversold and creates a buying opportunity not seen since the height of the financial crisis. The mREITs trade at approximately 0.88x to Q3 BV and have traded at such levels only three times since 2001 (7/07, 12/05 and 3/01)."

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

Shares of MFA Mortgage closed at $7.63 yesterday.

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