PennyMac Mortgage Investment Trust (PMT) PT Raised to $15 at Piper Sandler

Piper Sandler analyst Crispin Love raised the price target on PennyMac Mortgage Investment Trust (NYSE: PMT) to $15.00 (from $14.50) while maintaining a Neutral rating.

The analyst commented, "We are reiterating our Neutral rating and increasing our price target to $15 from $14.50 following 1Q24 earnings. PMT generated higher GAAP EPS of $0.39 vs. our $0.28 estimate due to higher than expected CRT gains and higher correspondent production revenue, partially offset by net fair value declines in the interest rate sensitive strategies. Operating EPS of $0.20 was below our $0.34 estimate driven by lower than expected NII and servicing revenue. PMT recorded a slight decline in book value, but trends appear to be improving with management estimating the current operating run rate for EPS closer to $0.35. That being said, EPS remains below the $0.40 quarterly dividend and we believe PMT is trading close to fair value at 0.9x P/TBV while producing <10% operating ROTE."

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