KBW Has $29 Target, Outperform Rating On Hatteras Financial (HTS)

Keefe Bruyette & Woods has a $29 price target and an Outperform rating on shares of Hatteras Financial HTS. In a note to clients, KBW writes, "We spent a day marketing with management from Hatteras in New York. Much of the discussion focused on prepayments, both the natural increase from rising rates and the potential of a sharp increase if the government intervened. Management highlighted that while prepayments will likely pick up, the current trend is down from the elevated GSE buyout-related levels. Management also highlighted that spreads on new investments remain very attractive." Shares of Hatteras Financial Corp. closed at $28.36, a loss of 4 cents yesterday.