Chimera deal valuation supportive of other mortgage REITs, says BTIG

BTIG analyst Eric Hagen reiterated a Neutral rating on Chimera (CIM) after the company agreed to acquire HomeXpress Mortgage for $120M in cash and 2.1M shares of stock. The firm said the deal makes Chimera a little more interesting given the range of earnings upside it could supply if non-qualified mortgage origination hits a meaningful growth spurt. BTIG added that it believes the deal valuation is supportive of the other mortgage REITs with non-QM lending/aggregation businesses, including Angele Oak (AOMR), Ellington (EFC), Rithm (RITM), and AG Mortgage (MITT). The firm has Buy ratings on Angel Oak, Ellington, and Rithm, and is Neutral on AG Mortgage.