JMP Securities analyst Steven DeLaney upgraded MFA Financial Inc.'s stock rating to "market outperform" from "market perform," and set a price target of $7.50.

The analyst noted that MFA Financial has a solid undistributed taxable earnings cushion and posted strong third-quarter results, which along with a recent sell-off in its shares, creates an "attractive entry point" for investors.

According to the analyst, investors could realize 7.5% in price appreciation and a 14.3% cash yield if the new price target is achieved.