Cantor Fitzgerald Upgrades Dynex Capital (DX) to Buy; 3Q:11 Operating Metrics Generally Better than Peers

Cantor Fitzgerald upgraded Dynex Capital (NYSE: DX) from Hold to Buy with a price target of $9.15.

Cantor analyst, says, "With above-market risk-adjusted returns on its legacy CMBS portfolio, we expect Dynex to be able to sustain through 2012 an ROE similar to peers. Accordingly, we believe that Dynex should trade at least at book value. Our $9.15 target price (down from $9.50, due to a lower book value) assumes a book value multiple of 1.0x. Our 2012 dividend estimate of $1.08 equates to a 12.7% dividend yield. Share price appreciation plus dividends should produce a 12-month total return of 20%...Based on a 12-month total return above our 15% threshold, we are upgrading shares."

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

Shares of Dynex Capital closed at $8.53 yesterday.

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