Armour Gets Coverage From Bank of America. (ARR)
Posted by John Perry on Mar 24th, 2012 // No Comments
Bank of America (NYSE: BAC) initiated coverage on shares of Armour Residential (NYSE: ARR) in a research note issued on Wednesday. They set a “buy” rating and a $7.00 price target on the stock.
The analysts wrote, “ARR is a mortgage REIT that invests exclusively in residential agency MBS. We forecast ARR will generate a 17% dividend yield in 2012. Valuation should rise to around 1.05x BV, in our view, suggesting modest upside potential. Investors could earn a 22% total return over the next 12 months, 17% from dividends plus 5% from share price improvement, based on our dividend forecast and price objective. The primary risks to our forecast include: changes in interest rates, rising prepayments, execution risk, liquidity risk and adverse changes in regulatory policies.”
A number of other firms have also recently commented on ARR. Analysts at National Securities reiterated a “buy” rating on shares of Armour Residential in a research note to investors on Wednesday, March 7th. Separately, analysts at Deutsche Bank (NYSE: DB) initiated coverage on shares of Armour Residential in a research note to investors on Tuesday, February 21st. They set a “buy” rating and a $7.75 price target on the stock. Finally, analysts at B. Riley downgraded shares of Armour Residential from a “neutral” rating to a “sell” rating in a research note to investors on Monday, February 6th.
Shares of Armour Residential traded up 0.30% during mid-day trading on Wednesday, hitting $6.68. Armour Residential has a one year low of $5.40 and a one year high of $7.80. The stock’s 50-day moving average is $6.9 and its 200-day moving average is $7.00. The company’s market cap is $946.6 million.
ARMOUR Residential REIT, Inc. (ARMOUR), formerly Enterprise Acquisition Corp., is focused on investing in Agency residential mortgage-backed securities.