Two Harbors price target lowered to $14.50 from $15 at JMP Securities

JMP Securities lowered the firm’s price target on Two Harbors to $14.50 from $15 and keeps an Outperform rating on the shares. The third quarter was highlighted by a substantial rally in interest rates and steepening of the yield curve, with 2-year Treasury yields declining 111 basis points and 10-year Treasury rates dropping 62 bps, the analyst tells investors in a research note. The firm expects this to result in positive book value improvements for the Agency MREIT group, while stable to modestly tighter credit spreads and lower rates should also result in modest book value gains for the hybrid REIT group.