FBR Capital Upgrades Annaly Capital Management (NLY) to Market Perform

FBR Capital upgraded Annaly Capital Management (NYSE: NLY) from Underperform to Market Perform with a price target of $11.00 (from $10.00), saying they see enough positive headway to move up the rating.

Analyst Daniel Altscher commented, "When we downgraded Annaly to Underperform, the summary of our call was less a specific "rate call" then it was that if rates were to be volatile in either direction, we thought Annaly could be more disproportionately at risk than other names, for instance, from a prepay perspective or a cost-of-financing side. While we believe all of these risks still exist, on top of NLY's valuation slightly above the peer range (NLY at ~83% versus residential mREITs at ~79%), we think some positive developments now warrant a more balanced view of the stock. Specifically, Annaly now has a $1 billion share repurchase authorization, and it has started to invest in non-agency securities. The commercial real estate platform seems to be gaining some significant traction in putting money out the door, on top of what appears to be a benign prepay environment for 3Q15."

For an analyst ratings summary and ratings history on Annaly Capital Management click here. For more ratings news on Annaly Capital Management click here.

Shares of Annaly Capital Management closed at $10.19 yesterday.

You May Also Be Interested In

• Stifel Downgrades Saipem (SPM:IM) (SAPMY) to Hold
• Telus International (TIXT) PT Lowered to $9 at Baird
• D.R. Horton (DHI) PT Lowered to $141 at RBC Capital