Wells Fargo Starts PennyMac Mortgage Investment Trust (PMT) at Outperform; Strong Management Team/External Adviser

Wells Fargo initiates coverage on PennyMac Mortgage Investment Trust (NYSE: PMT) with a Outperform. PT range $19-$20.

Wells analyst says, "Our Outperform rating is based on (1) PMT having a strong management team, (2) superior asset selection and risk management, and (3) discounted valuation relative to the mortgage REIT universe. We are establishing 2011 and 2012 EPS estimates of $2.38 and $2.85, respectively."

"We believe PMT shares are likely to trade closer to book value given our expectation that the company will continue take advantage of the distressed loan market and continue to build out its correspondent lending channel."

For an analyst ratings summary and ratings history on PennyMac Mortgage Investment Trust click here. For more ratings news on PennyMac Mortgage Investment Trust click here.

Shares of PennyMac Mortgage Investment Trust closed at $16.64 yesterday.

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