Bank Of America Maintains Rating, PT On CIM

Bank of America is maintaining its Buy rating and its $4.25 price target on Chimera Investment Corp. CIM in its preview of the company's Q2'11 results. Says Bank of America, in the report, “Chimera Investment Corp. shares fell 2.7% today after concern about the debt ceiling negotiations coincided with some negative commentary on the stock from non-traditional news sources. The recent weakness in the shares represents a buying opportunity, in our view, given our belief that the dividend is sustainable at current levels. We estimate that CIM will report an economic BV of $3.10 in Q2'11 which should further serve to underpin share prices. Increases in agency MBS prices partially offset declines in non-agency MBS market values, based on our model, which gives us a reasonable degree of confidence that BV is between $2.90 and $3.15. We are maintaining our $4.25 price objective which suggests the recent price weakness provides a compelling entry point for new investors.” CIM closed yesterday at $3.29.