UPDATE: Deutsche Bank Downgrades American Capital Mortgage Investment on Valuation

In a report published Monday, Deutsche Bank analyst Stephen Laws downgraded the rating on American Capital Mortgage Investment (NASDAQ: MTGE) from Buy to Hold, but reiterated the $20.50 price target.

In the report, Deutsche Bank noted, “Given shares of MTGE are trading roughly 1% below our price target, which is based on 95% of 12/31 book value, we are downgrading MTGE to a Hold from a Buy. We believe dividends will drive the majority of returns from current levels.”

American Capital Mortgage Investment Corp. closed on Friday at $19.66.