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Nomura Securities Maintains a 'Buy' on American Capital Agency (AGNC); Q4 Review

February 8, 2012 11:40 AM EST
AGNC Hot Sheet
Rating Summary:
    12 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Nomura Securities maintains a 'Buy' on American Capital Agency (NASDAQ: AGNC) price target of $30.00.

Aanlyst, Bill Carcache, said, "Although confusion surrounding the treatment of unrealized gains and losses on swaps initially made it difficult to determine how the quarter’s results fared relative to expectations, we now peg 4Q11 EPS at $1.40, well ahead of both our estimate and consensus of $1.22. Overall, the portfolio continues to perform well, as the company manages through a tighter spread environment but continues to generate mid- to high teens returns on equity. We are maintaining our estimates, which already factored in a ~10% dividend cut and reflect a prolonged period of tight spreads. We continue to believe that AGNC is well positioned to outperform, largely as a result of the management team’s asset selection prowess."

For an analyst ratings summary and ratings history on American Capital Agency click here. For more ratings news on American Capital Agency click here.

Shares of American Capital Agency closed at $29.74 yesterday, with a 52 week range of $22.03-$30.76.


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