UPDATE: Wunderlich Raises Reduces PT to $22.50 on Western Asset Mortgage Capital

Wunderlich Securities reiterated its Buy rating on Western Asset Mortgage Capital

and increased its price target modestly from $22 to $22.50. Wunderlich Securities commented, "Based on the rally in agency RMBS following the launch of a third round of qualitative easing and the estimated 5% increase in the fair value of Western Asset's (WMC's) portfolio, we are raising our price target by $0.50 to $22.50 per share and maintain a Buy rating. Although we expect to see continued pressure on net interest margins as the curve flattens, WMC is small and nimble and management demonstrated an ability to find value through asset selection and portfolio management in its first partial quarter of operations." Western Asset Mortgage Capital closed at $21.97 on Friday.