Nomura Securities Upgrades American Capital Agency (AGNC) and Annaly Capital (NLY) to Buy

Nomura Securities upgraded Agency REITs American Capital Agency (NASDAQ: AGNC) and Annaly Capital Management (NYSE: NLY) from Neutral to Buy with price target up $2 apiece to $23 and $12, respectively.

AGNC and NLY have 19% upside apiece with total returns of 32% and 31%, respectively.

"With damage to book value in Q2 is priced in and unlikely to recur based on the U.S. rates outlook from our US Economics and Strategy Team and large buybacks in play, our upgrades are based on expectation for multiple expansion and improved earnings power," analyst Brock Vandervliet said.

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 $19.55 yesterday.

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