FBR Capital Reiterates an 'Outperform Cypress Sharpridge (CYS); Another Quarter, Another Dividend Coverage
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Price: $7.31 --0%
Rating Summary:
2 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital reiterates an 'Outperform Cypress Sharpridge (NYSE: CYS), PT $13.
FBR analyst says, "While we believe that the portfolio is still another quarter away from stabilization due to unsettled forward purchases, we think the current $0.60 dividend payout is money good until the FOMC changes its stance on monetary policy. In that we do not believe the FOMC will change its stance until mid 2012, we believe that shares, currently at a 19.5% yield, offer compelling risk-adjusted returns especially in light of mixed economic undertones. We are maintaining our $13 price target until management evidences the end result of its aggressive capital raising efforts: a quarter of normalized earnings. In that CYS has $2.3B of forward settling purchases scheduled in 2Q11, we do not expect to see stabilization until 3Q11. That being said, we believe that shares are quite cheap, and our price target is quite conservative, considering that the peer group trades at a 15% average yield. If CYS were to trade to a 15% yield based on the current $0.60 dividend payout, shares would trade at $16 (our former price target)."
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 $12.31 yesterday.
FBR analyst says, "While we believe that the portfolio is still another quarter away from stabilization due to unsettled forward purchases, we think the current $0.60 dividend payout is money good until the FOMC changes its stance on monetary policy. In that we do not believe the FOMC will change its stance until mid 2012, we believe that shares, currently at a 19.5% yield, offer compelling risk-adjusted returns especially in light of mixed economic undertones. We are maintaining our $13 price target until management evidences the end result of its aggressive capital raising efforts: a quarter of normalized earnings. In that CYS has $2.3B of forward settling purchases scheduled in 2Q11, we do not expect to see stabilization until 3Q11. That being said, we believe that shares are quite cheap, and our price target is quite conservative, considering that the peer group trades at a 15% average yield. If CYS were to trade to a 15% yield based on the current $0.60 dividend payout, shares would trade at $16 (our former price target)."
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 $12.31 yesterday.
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