NEW YORK (TheStreet) -- JMP Securities decreased its price target on PennyMac Mortgage Investment Trust (PMT) - Get Report stock to $16.50 from $19 and reiterated its "market outperform" rating on Wednesday morning.

The Moorpark, CA-based specialty finance company invests primarily in residential mortgage loans and mortgage-related assets.

"We reduce our price target to $16.50, equal to 81% of book value, from $19 (prior 94%) to reflect more conservative market valuations currently being placed on mortgage finance companies and mortgage REITs, as PMT's peer group median valuation currently stands at 77% of book value," the firm said in an analyst note.

However, JMP Securities reiterated its "market outperform" rating on its continued belief that the company's organic opportunities offer unique and attractive investments.

The shares should achieve a more favorable valuation over time, particularly as noise from the legacy residential loan portfolio declines, the firm added.

At its new investor presentation earlier this month, PennyMac's management indicated that it is pursuing asset sales to fund both share repurchases and new flow investment in credit risk transfers (CRTs) and mortgage servicing rights (MSRs).

Shares of PennyMac are down by 0.97% to $13.26 on Wednesday morning.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D+ on the stock.

This is driven by several weaknesses, which should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks covered.

The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: PMT

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