UPDATE: Jefferies Downgrades American Capital Agency to Hold on Valuation

Jefferies reduced its rating on American Capital Agency AGNC from Buy to Hold with a reiterated $34 price target. Jefferies noted, "With AGNC trading to a P:B multiple of 1.18x our projected 3Q12 book value, and our view that QE3 is now fully priced into the shares, we are downgrading the shares from Buy to Hold. Although AGNC has arguably the most savvy management team and the best total return over the TTM in the mortgage REIT space, we cannot justify adding to positions at these valuation levels." American Capital Agency closed at $36.68 on Monday.