Nomura Securities maintains a 'Buy' on CYS Investments (CYS); Strong Results on Better Spreads; Sustainability of Dividend

Nomura Securities maintains a 'Buy' on CYS Investments (NYSE: CYS) price target of $13.75.

Analyst, Bill Carcache, said, "Including $0.15 of drop income, CYS reported 1Q12 core EPS of $0.54 versus our estimate of $0.50 and consensus of $0.47. The beat was primarily driven by lower-than-expected funding costs and higher-than-expected drop income. This quarter’s annualized ROE of 15.8% x BVPS of $13.14 results in dividend capacity of $2.08 for the full year, or $0.52 for the quarter."

"The results give us comfort in the sustainability of the dividend. This quarter’s annualized ROE of 15.8% x BVPS of $13.14 results in dividend capacity of $2.08 for the full year, or $0.52 for the quarter."

For an analyst ratings summary and ratings history on CYS Investment click here. For more ratings news on CYS Investment click here.

Shares of CYS Investment closed at $13.35 yesterday.

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