Wells Fargo Starts Two Harbors Investment (TWO) at Outperform, $10-$11 Valuation Range

Wells Fargo initiates coverage on shares of Two Harbors Investment (NYSE: TWO) with an Outperform rating and a valuation range of $10-$11.

The reports that its rating reflects the company's strong management team, superior asset selection and risk management, and their belief that TWO will report leading economic returns in the industry.

An analyst at Wells Fargo comments, "TWO has delivered a very strong economic return to shareholders as measured by growth in NAV plus cash dividends. Since inception, TWO’s book value per share has increased 7.2% to $9.73 at 6/30/11 from $9.08 at 12/31/09. TWO has also paid a cumulative total of $2.54 in dividends per share for a total economic value added of 35.2%. We discuss this in more detail in our note."

The firm is forecasting EPS for 2011 and 2012 of $1.55 and $1.66.

For more ratings news on Two Harbors Investment click here and for the rating history of Two Harbors Investment click here.

Shares of Two Harbors Investment closed at $9.47 yesterday.

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