Nomura Securities Starts Two Harbors Investment (TWO) at Neutral

Nomura Securities initiates coverage on Two Harbors Investment (NYSE: TWO) with a Neutral rating and a price target of $10.00.

Analyst Brock Vandervliet commented, "Two Harbors has proven exceptionally adaptive in a changing mortgage finance environment. TWO started out as a hybrid REIT, created during the financial crisis to sweep up mispriced Agency and private-label MBS. Now, due to its adaptability and growing organic origination capability, we believe TWO is better positioned with a more complete set of businesses than some of its peers (RWT, MFA, CIM, IVR, and EFC). However, it has one of the higher valuations in the Hybrid REIT sector and faces substantial interest rate uncertainty. As such, we think TWO’s upside will be limited until this macro uncertainty subsides and the company brings more benefit of its new initiatives to the bottom line. We think the stock is fairly valued at $10, or 0.95x our 4Q16 book value estimate."

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

Shares of Two Harbors Investment closed at $9.88 yesterday.

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