Investment analysts at Stifel Nicolaus began coverage on shares of Western Asset Mortgage Capital Corp (NYSE: WMC) in a note issued to investors on Monday. The firm set a “buy” rating and a $22.00 price target on the stock.
The analysts wrote, “We like the pure agency MBS focus, the valuation discount (6%) to book value, and the projected dividend yield (14% in 2H12+) of WMC. We also view the active portfolio management strategy and expected emphasis on the 30-year fixed market providing some differentiation from peers. …While most of its peers tend toward buy and hold portfolio strategies, WMC has indicated it anticipates a more active approach to adjusting portfolio composition as opportunities change.”
Shares of Western Asset Mortgage Capital Corp traded up 2.38% during mid-day trading on Monday, hitting $18.96. Western Asset Mortgage Capital Corp has a one year low of $17.57 and a one year high of $19.36.
Other equities research analysts have also recently issued reports about the stock. Analysts at Jefferies Group (NYSE: JEF) initiated coverage on shares of Western Asset Mortgage Capital Corp in a research note to investors on Monday. They set a “buy (n/a)” rating and a $21.00 price target on the stock. Separately, analysts at Deutsche Bank (NYSE: DB) initiated coverage on shares of Western Asset Mortgage Capital Corp in a research note to investors on Monday. They set a “buy” rating and a $21.75 price target on the stock. Finally, analysts at Citigroup (NYSE: C) initiated coverage on shares of Western Asset Mortgage Capital Corp in a research note to investors on Monday. They set a “buy” rating on the stock.
Western Asset Mortgage Capital Corporation is focused on investing in, financing and managing primarily residential mortgage-backed securities (RMBS), which are not issued or guaranteed by a United States Government agency or federally chartered corporation, or non-Agency RMBS.
