Arbor Realty price target raised to $13.50 from $12 at JPMorgan

JPMorgan analyst Richard Shane raised the firm’s price target on Arbor Realty to $13.50 from $12 and keeps an Underweight rating on the shares as part of a Q3 earnings preview. The firm expects residential mortgage real estate investment trusts to be the earliest beneficiaries of lower interest rates. Residential mortgage REITs are levered to falling rates via a positive duration gap, which should be immediately accretive to book value, the analyst tells investors in a research note.