Wunderlich Raises PT on MFA Financial to $8.25 (MFA)

Wunderlich is out with its report today on MFA Financial MFA, raising its price target from $8.00 to $8.25. In a note to clients, Wunderlich writes, "MFA Financial reported 4Q10 core EPS a penny light of our expectations, coming in at $0.22 for the quarter and $0.86 for the year. The dividend, based on taxable earnings, exceeded GAAP earnings by about $0.03 per share. We are raising our 2011 estimate because we expect the company will gradually increase financial leverage. However, we believe MFA's risk-adjusted returns could continue to lag those of other mortgage REITs. We maintain our Hold rating and are increasing our price target to $8.25 on MFA shares." Shares of MFA closed Monday at $8.32, down 0.95% from Friday's close.