FBR Capital Reiterates an 'Outperform' on Hatteras Financial (HTS); Stabilized Portfolio Earnings Around the Corner

FBR Capital reiterates an 'Outperform' on Hatteras Financial (NYSE: HTS), PT $32.

FBR analyst says, "We reiterate our rating and price target on shares of Hatteras Financial following solid 1Q11 results and, more importantly, detailed commentary from management that gives us confidence in our expectations for higher forward earnings and a dividend raise in 3Q11. As expected, 1Q11 results did not evidence Hatteras' fully stabilized earnings potential due to two equity offerings during the quarter. This should come as no surprise. Instead, we advocate focusing on forward earnings power post new purchase settlement. Not only do our forward earnings estimates cover the current payout, but we expect Hatteras to be able to increase the dividend in 3Q11 to as much as $1.10 per share."

For more ratings news on Hatteras Financial click here and for the rating history of Hatteras Financial click here.

Shares of Hatteras Financial closed at $28.39 yesterday.

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