Orchid Island initiated with a Buy at Janney on book value per share growth

As previously reported, Janney Montgomery Scott analyst Jason Stewart initiated coverage of Orchid Island Capital with a Buy rating and $9.50 fair value estimate. Mortgage spreads, the primary driver of book value, are wider than long-term averages and likely to tighten as fixed income volatility declines, driving book value higher, the analyst tells investors. Orchid’s diversified and liquid portfolio is well positioned to deliver long-term shareholder value in this environment, adds the firm, which expects mid-single growth in book value per share along with multiple expansion.