BTIG downgraded Ellington Financial to Neutral from Buy without a price target. The firm says the residential credit-focused mortgage real estate investment trusts offer a more discounted valuation than the agency-focused, plus more book value upside potential over time. BTIG cites Ellington's "premium valuation" for the downgrade. The company has a limited history of trading at a premium to book value, which limits the upside potential for shares, the analyst tells investors in a research note.
