UBS Maintains a 'Neutral' on Annaly Capital (NLY); Higher Prepays = Downside Surprise
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Price: $23.33 -0.26%
Rating Summary:
14 Buy, 10 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 10 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on Annaly Capital (NYSE: NLY) price target raised from $15.75 to $16.25.
UBS analyst said, "We calculate NLY’s core EPS at $0.43, which is consistent with how NLY reported core EPS until 3Q10, but may not be similar to consensus. Our core EPS excludes realized/unrealized gains/losses...Leverage continues to decline at 5.4x vs peers at 7x-9x due to macro tail risk concerns. The portfolio shrank for the first time in 2 years declining 2% q/q and asset sales increased with 9% of the portfolio sold for an $81m gain. Surprisingly, book value declined for the second quarter in a row falling 1% to $16.06."
"We continue to prefer American Capital Agency (Nasdaq: AGNC) over NLY due to lower prepayments and BV growth despite higher leverage, and believe NLY trades at a slight premium to book but a discount to peers given earnings pressure and BV underperformance."
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 $17.12 yesterday.
UBS analyst said, "We calculate NLY’s core EPS at $0.43, which is consistent with how NLY reported core EPS until 3Q10, but may not be similar to consensus. Our core EPS excludes realized/unrealized gains/losses...Leverage continues to decline at 5.4x vs peers at 7x-9x due to macro tail risk concerns. The portfolio shrank for the first time in 2 years declining 2% q/q and asset sales increased with 9% of the portfolio sold for an $81m gain. Surprisingly, book value declined for the second quarter in a row falling 1% to $16.06."
"We continue to prefer American Capital Agency (Nasdaq: AGNC) over NLY due to lower prepayments and BV growth despite higher leverage, and believe NLY trades at a slight premium to book but a discount to peers given earnings pressure and BV underperformance."
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 $17.12 yesterday.
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