JMP buys the dip in Impac Mortgage

• An attractive valuation combined with an improved earnings outlook following the recent secondary offering make for an upgrade to Outperform with $20 price target, says analyst Trevor Cranston.
• The capital raise, says Cranston, should give Impac (NYSEMKT:IMH) the ability to retain nearly 100% of newly-originated servicing for the foreseeable future.
• The $20 price target implies 51% upside from yesterday's close.