Armour Residential REIT price target raised to $16 from $15.50 at UBS

UBS analyst Doug Harter raised the firm’s price target on Armour Residential REIT (ARR) to $16 from $15.50 and keeps a Neutral rating on the shares. Agency MBS spreads have narrowed to levels below long-term averages, leading UBS to view the risk-reward as balanced for both spreads and book value performance, the analyst tells investors in a research note. Credit-focused mREITs, however, trade at more attractive valuations and offer greater long-term book value upside.