Compass Point Upgrades Annaly Capital (NLY) and American Capital Agency (AGNC) to Buy

Compass Point upgraded Annaly Capital Management (NYSE: NLY) and American Capital Agency (NASDAQ: AGNC)
from Neutral to Buy with price targets of $11 and $22, respectively.

Analyst Jason Steward commented, "We upgrade our view of the Agency Mortgage REIT space to positive and our ratings on NLY and AGNC to Buy from Neutral. The sector valuation, improved fundamentals, combined with a reversal in benchmark interest rates (namely the 10 year UST) and a change in group sentiment have led us to upgrade our opinion on this out of favor group. NLY, AGNC and CYS stand to benefit the most. With incremental ROEs in the low double digits and modest QTD appreciation in book value, we believe shares can trade to 90% of 2Q15 BVPS (slightly lower on current estimated BVPS) and still maintain double digit yields."

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 $10.25 yesterday.

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