Wells Fargo Starts American Capital Mortgage (MTGE) at Outperform; Strong Management Team; Superior Asset Selection

Wells Fargo initiates coverage on American Capital Mortgage (NASDAQ: MTGE) with an Outperform. PT range $20-$22.

Wells analyst says, "We consider MTGE to be a good hybrid REIT investment opportunity due to (1) having a strong management team, (2) superior asset selection capability, and (3) diversified and flexible investment strategy. We are establishing 2011 and 2012 EPS estimates of $1.50 and $3.40, respectively...We believe MTGE shares are likely to trade at a slight premium to its book value per share given our expectation that the company can deliver industry leading economic returns to shareholders."

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

Shares of American Capital Mortgage closed at $17.09 yesterday.

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