Annaly Capital Upgraded to “Market Perform” by Wells Fargo (NLY)

By Staff,

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Wells Fargo has upgraded financial services company, Annaly Capital Management, Inc.( NLY ) to "Market Perform" Thursday.

The firm has upgraded NLY from "Underperform" to "Market Perform" with a valuation range of $15.50-$16.50. That range suggests up to a 2.8% increase on the stock's current price of $16.03, and up to a 3.2% increase on the stock's YTD price of $15.96.

An analyst from the firm commented, "we still remain concerned about potential elevated prepayments over the coming months and reinvestment challenges with the Federal Reserve's open-ended mortgage purchases, which we believe could be reflected in the shares. We believe the announcement on October 16 of a $1.5 billion share buyback over the coming year could support shares of NLY. Further, if our 5-10% Q3 book value increase assumption is correct, with NLY at the lower end of the range, the shares would be trading close to 0.95x price to book, which it has only done 2 times as a public company."

Annaly Capital shares were trading mostly flat on Thursday morning.

Annaly Capital Management, Inc.( NLY ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: NLY

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