Market Overview

UPDATE: Bank of America Resumes Coverage on Annaly Capital Management with Neutral Rating, $14.75 PT

Share:
Related NLY
Benzinga's M&A Chatter for Monday April 11, 2016
Mid-Afternoon Market Update: Crude Oil Up 1.7%; Insys Therapeutics Shares Slide
Retirement Six Months Away, H1-2016 Update, High Yield Portfolio Generating 12% Cash Flow (Seeking Alpha)

In a report published Monday, Bank of America resumed coverage on Annaly Capital Management (NYSE: NLY) with a Neutral rating and $14.75 price target.

Bank of America noted, “We are resuming coverage of Annaly Capital (NLY) with a Neutral rating, given its attractive dividend yield and limited upside potential. We believe NLY will likely generate a healthy 10% dividend yield, despite elevated refinance activity serving as an overhang on earnings. Specifically, in the current low rate backdrop, we expect NLY's portfolio returns (ROE) to migrate lower for the foreseeable future, despite diversification into the commercial mortgage sector. More positively, NLY's valuation appears reasonable at 0.90x of Q3'12 stated BV, suggesting to us it should witness share price support near current levels. We think upside will likely be muted by concerns of further earnings erosion and possible BV weakness in a rising rate environment.”

Annaly Capital Management closed on Friday at $14.80.

Latest Ratings for NLY

DateFirmActionFromTo
Mar 2016Compass PointDowngradesBuyNeutral
Mar 2016JP MorganMaintainsNeutral
Feb 2016Deutsche BankMaintainsHold

View More Analyst Ratings for NLY
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Initiation Analyst Ratings

 

Related Articles (NLY)

View Comments and Join the Discussion!