American Home Mortgage Investment initiated with "outperform"

09/22/05 - Bear Stearns

NEW YORK, September 22 (newratings.com) - Analyst Scott R Coren of Bear Stearns initiates coverage of American Home Mortgage Investment Corporation (AHM) with an "outperform" rating. The target price is set to $36.

In a research note published this morning, the analyst mentions that the company is well positioned to hike its dividends, despite the tough operating environment. American Home Mortgage Investment is likely to utilize the $350 million in proceeds from its recent secondary offering to expand its investment portfolio in the near future. According to Bear Stearns, the company is expected to witness better-than-expected origination volumes in the near term due to its recent market share gains.