New York Mortgage price target lowered to $3.50 from $4 at JonesTrading

JonesTrading analyst Jason Stewart lowered the firm’s price target on New York Mortgage to $3.50 from $4 and keeps a Buy rating on the shares. The analyst has turned constructive on the medium-term outlook for agency mortgage real estate investment trusts. Fixed income volatility is set to decline as the Federal Reserve approaches cycle terminal fed funds rates, which should tighten the mortgage basis through 2023, albeit not linearly, Stewart tells investors in a research note. He says high quality, liquid assets should perform well against this backdrop.