Citizens analyst Trevor Cranston lowered the firm's price target on PennyMac Mortgage to $15 from $15.50 and keeps an Outperform rating on the shares. Ahead of the upcoming Q4 earnings, the yield curve steepened, swap spreads widened, and interest rate volatility declined, supporting strong Agency MBS spread tightening while credit spreads remained generally stable, the analyst tells investors in a research note. These conditions point to strong positive book value performance for Agency MREITs and stable to modestly higher book values for Credit MREITs, the firm says.
