Janney starts ‘core long-term income holding’ Dynex Capital with a Buy

As previously reported, Janney Montgomery Scott analyst Jason Stewart initiated coverage of Dynex Capital with a Buy rating and $13.50 fair value estimate. Mortgage spreads, the primary driver of book value, are wider than long-term averages and likely to tighten as fixed income volatility declines, driving book value higher, the analyst tells investors. Dynex’s diversified, high-quality portfolio and focused risk-management approach make it a “core long-term income holding,” the analyst added.