Cantor Fitzgerald Cut Price Target on Invesco Mortgage (IVR), Sees 10% Loss in Book Value Over Aug, Sep

Cantor Fitzgerald is reaffirming its Buy rating on shares of Invesco Mortgage Capital (NYSE: IVR) while lowering its price target from $20 to $16.50.

The company's book value fell by 9 percent in the second quarter and is expected to fall again in the third quarter. Management reported that its book value declined another 5 percent in July and the firm believes it lost an additional 10 percent over the months of August and September.

The firm believes that are finally getting better as an analyst comments, "In our view, Invesco Mortgage's book value has now stabilized, due to no hedging of MBS added in the August equity raise, a partial rebound in interest rates, and stabilization of non-Agency MBS pricing. In addition, management indicated at a 9/26/11 investor presentation that CPRs on Invesco Mortgage's Agency MBS had remained very stable."

Cantor Fitzgerald cut its 2012 annual dividend forecast from $4.00 to $3.20.

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

Shares of Invesco Mortgage Capital closed at $14.14 yesterday.

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