AGNC Investment Corp (AGNC) PT Raised to $9.25 at BofA Securities

BofA Securities analyst Derek Hewett raised the price target on AGNC Investment Corp (NASDAQ: AGNC) to $9.25 (from $8.50) while maintaining a Neutral rating.

The analyst comments "AGNC reported Q2 core EPS of $0.38, modestly below the BofA/Consensus forecast of $0.41. Core EPS excludes $0.01 of income related to UST-based hedges. Relative to the BofA forecast, the variance was related to the ATM issuance and lower spread income. The Q2 economic return was -1% as tariff-related macro uncertainty in April caused Agency MBS to underperform most asset classes. That said, AGNC believes the investment outlook for Agency MBS remains attractive given favorable supply/demand dynamics, wide mortgage spreads, and the cautious approach to GSE reform. Additionally, AGNC noted the ROE on new investments is 18-20%, implying dividend stability in the current environment. Overall, we think the risk/reward is balanced. Reiterate Neutral."

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