Citigroup has lowered its price target for real estate
investment trust, Annaly Capital Management, Inc.(
The firm has reaffirmed its rating of "Neutral" for the company,
and has lowered its price target from $17 to $15. This price target
suggests a slight decrease from the stock's current price of
An analyst from the firm commented, "we rate the shares of NLY
Neutral with a $15 target price. NLY owns a $130 billion high
quality portfolio of Fannie/Freddie Mac mortgage-backed securities
financed with short-term repurchase debt. In response to the
economic recession, the Fed reduced their target rate to 0% on
December 16, 2008 and rates have remained there since then. We
believe NLY will generate a solid relative yield though we see
downside to the dividend. We also acknowledge elevated prepayment
risk and tighter reinvestment spreads. And gain on sale is a
greater portion of earnings. We don't see much upside to the stock
beyond the dividend. Longer term, the key risk for NLY is if the
Fed raises short-term rates."
Annaly Capital shares were down 17 cents, or -1.11% during
premarket trading Wednesday. The stock is down -4.01% YTD.
The Bottom Line
Shares of Annaly Capital (
) have a 13.05% dividend yield, based on last night's closing stock
price of $15.32. The stock has technical support in the $14 price
area. If the shares can firm up, we see overhead resistance around
the $16.00-$16.50 price levels.
Annaly Capital Management, Inc.(
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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