Bank of America Comments on Earnings at Chimera Investment Corporation

Bank of America has published a report on Chimera Investment Corporation CIM reviewing earnings for the specialty finance group. In the report, Bank of America wrote, "Chimera Investment (CIM) reported Q2'11 core EPS of $0.14 p.s., in line with the Street, on a sideways balance sheet, lower spreads and a modestly lower BV. We think CIM will react reasonably well to the Q2 results, as expectations were low, in our opinion, coming into the print. BV should come as a positive surprise, despite the largely in-line earnings results. Economic BV declined to $3.08 from $3.16, but still well above the low-end of the $2.90-$3.15 range that we think investors anticipated because of non-agency MBS price weakness in the quarter." Bank of America rated Chimera Investment Corporation a BUY with a price target of $4.25. Chimera Investment Corporation closed Monday at $3.11.