Wunderlich Maintains Buy On Hatteras Financial Corp. (HTS)

Wunderlich Securities is maintaining its Buy rating and $31.50 price target on shares of Hatteras Financial Corp. HTS. In a note sent to clients, Wunderlich writes, "Hatteras Financial Corp. (HTS) furthered its portfolio repositioning initiative by offering 9.0 million shares on January 4, 2011. We are assuming the incremental shares are priced at $28.75, which is a premium to projected year end 2010 book value. We believe the payoff will be a more sustainable dividend in 2011, and perhaps allow some upside to the current indicated dividend of $4 per share, annualized. We expect the company to utilize a portion of forward settling purchases, so we don't look for any upside to the dividend in 1Q11, but by 2H11, momentum should be positive, in our opinion. We maintain our Buy rating and $31.50 price target on HTS shares." Shares of HTS are off 87 cents to $28.80, a loss of 2.9%.