UPDATE: KBW Downgrades Chimera Investment to Market Perform (CIM)

KBW is out with its report today on Chimera Investment CIM, downgrading shares of CIM from Outperform to Market Perform. In a note to clients, KBW writes, "We are downgrading Chimera to Market Perform from Outperform based on valuation. The shares are trading at 1.21x reported book value. Our new $3.75 price target equates to 1.16x reported book value. We expect the company's valuation to trend down reflecting lower earnings power relative to 2010. We are reducing our 2012 EPS estimate to $0.50 from $0.56. Our estimates still suggest a 14% dividend through 2011." At the time of posting, shares of CIM were trading pre-market at $3.90, down 0.51% from Friday's close.