Two Harbors price target lowered to $13.50 from $15 at JPMorgan

JPMorgan analyst Richard Shane lowered the firm’s price target on Two Harbors to $13.50 from $15 and keeps a Neutral rating on the shares. Rising interest rates have been a headwind for both residential mortgage real estate investment trusts and commercial mortgage REITs for almost two years, the analyst tells investors in a research note. However, for the first time since this rate cycle began, JPMorgan sees “risk skewed towards lower rather than higher.” While commercial mortgage REITs will continue to face deteriorating credit, lower rates could bring incremental relief for projects at the edge of default. says JPMorgan.