Invesco Mortgage Capital's Fair Value Remains Steady, But Analysts Reset Sector Assumptions

Analysts have shifted their assumptions for Invesco Mortgage Capital, keeping the fair value steady at $8.67 but with a higher discount rate and measured revenue growth outlook. The stock is aligned with refreshed sector assumptions for agency mortgage backed securities spreads and funding conditions. Bank of America recently lifted its price target, and BTIG highlights IVR as a beneficiary of government-sponsored enterprises purchasing up to $200b in mortgage-backed securities. However, BTIG prefers Dynex and has reservations about IVR's relative execution and growth prospects.