Nomura Instinet analyst Matthew Howlett started Dynex Capital with a Buy rating and $7.00 price target. The analyst believes the company should grow its core earnings and economic return above its peers and finds the stock inexpensive at current levels. He also initiated coverage of the U.S. Mortgage REITs industry with a positive outlook. The environment for levered mortgage-based operating models is the best it's been since the Taper Tantrum, Howlett tells investors in a research note. He thinks the space is poised to attract interest from "yield-starved investors amid a low, range-bound interest rate environment and expected yield curve steepening."