PennyMac downgraded to Market Perform from Outperform at Keefe Bruyette

Keefe Bruyette downgraded PennyMac Mortgage (PMT) to Market Perform from Outperform with a price target of $12, down from $13.50. The shares are likely to trade at a wider discount to book value until there is clarity that PennyMac’s credit-sensitive strategy can bridge the 9c gap between its 31c per share run-rate earnings target and 40c per share dividend that is likely to remain stable, the analyst tells investors in a research note.