Nomura Securities Maintains a 'Buy' on American Capital Agency (AGNC); Q4 Results Mixed, Strong Outlook Unchanged

Nomura Securities maintains a 'Buy' on American Capital Agency (NASDAQ: AGNC) price target of $30.00.

Analyst, Bill Carcache, said, "AGNC reported 4Q11 GAAP EPS of $0.99 and book value of $27.71 (+3% sequentially). Consensus EPS and BVPS estimates were $1.22 and $26.92, respectively. We place little reliance on consensus as it’s unclear to us that the Street has appropriately factored in the company’s recent change in accounting relating to its hedging activity. We believe it was a mixed quarter, with the company generating positive BVPS growth on one hand (partly through an accretive equity raise), but spread compression continuing to negatively impact earnings on the other. While AGNC is not immune to a flattening yield curve environment, we continue to believe it’s well positioned to generate mid-teens total returns at roughly half the risk of the overall market."

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 $29.48 yesterday.

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