Cantor Fitzgerald Upgrades MFA Mortgage (MFA) to Buy; Solid Quarter with Relatively Mild Prepayment Increase

Cantor Fitzgerald upgraded MFA Mortgage (NYSE: MFA) to Buy with a price target of $7.15.

Cantor analyst says, "MFA Financial reported 3Q:11 GAAP EPS of $0.23 and core EPS of $0.24 on Monday, versus its 3Q:11 dividend of $0.25 per share. Management indicated that 2011 REIT taxable income, and dividends, might exceed core earnings. In our view, it was a solid quarter. While lower interest rates produced materially higher prepayment speeds/CPRs at many mortgage REITs in 3Q:11, MFA's increase was relatively mild: its CPR was 18% in 3Q:11 versus 16% in 2Q:11 and less than 20% in October. We do not expect a material CPR increase in the remainder of 4Q:11. Book value was down 4%, due to non-Agency price weakness, which management regarded as a buying opportunity."

For an analyst ratings summary and ratings history on MFA Mortgage click here. For more ratings news on MFA Mortgage click here.

Shares of MFA Mortgage closed at $6.76 yesterday.

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