UPDATE: Wunderlich Securities Raises PT to $37 on American Capital Agency on Yield
Wunderlich Securities reiterated its Hold rating on American Capital Agency (NASDAQ: AGNC) but raised its price target from $35 to $37.
Wunderlich Securities commented, "Even though the asset purchase program launched by the FOMC could result in increased prepayment rates and diminishing returns on incremental agency RMBS investments, we are increasing our target for American Capital (AGNC) from $35 to $37. We believe our new price target could be conservative, as the search for yield is likely to attract investors and provide price support. We think it is reasonable to be conservative, because the actual pace of portfolio turnover and reinvestment is uncertain, and the dividend could be under pressure in 2013."
American Capital Agency closed at $36.49 on Friday.
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