Compass Point Initiates Arlington Asset Investment Coverage

Compass Point Research & Trading initiated coverage on Arlington Asset Investment (NYSE: AI) with a Buy rating and $34 price target in a research report published today.

In the report, Compass Point states, "While AI is structured as a C-Corp and not a REIT, we believe mortgage REITs are the best comparable business models for valuation purposes. Importantly, we see several benefits to AI's structure - a large deferred tax asset that will allow the company to organically grow book value and a qualified dividend stream (lower tax rate) that afford the company increased flexibility and are expected to lead to additional value creation."

SHares of Arlington Asset Investment were trading at $28.47 at the time of posting, up 1.39% from Friday's market close.