FBR Capital Reiterates an 'Outperform' on Capstead Mortgage (CMO); Timing Is on CMO's Side

FBR Capital reiterates an 'Outperform' on Capstead Mortgage (NYSE: CMO), PT $14.

FBR analyst says, "We believe Capstead's strategy is an attractive one for investors who want a significant hedge to interest rate sensitivity, as nearly 90% of the company's asset base is short-duration resetting ARMs. In the volatile yield curve aftermath of QE2, we believe that shares are attractive at current levels, trading at 1.1x last reported book value of $12.15 and a 12.4% dividend. On a forward basis, shares currently trade at nearly a 13.5% yield based on our 2H11 quarterly dividend estimate of $0.44."

For more ratings news on Capstead Mortgage click here and for the rating history of Capstead Mortgage click here.

Shares of Capstead Mortgage closed at $13.27 yesterday.

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