UPDATE: Sterne Agee Upgrades Annaly Capital Management to Neutral on Rising Mortgage Rates

Sterne Agee upgraded Annaly Capital Management NLY from Underperform to Neutral and raised the price target from $13.50 to $14.25. Sterne Agee noted, "The shares of NLY are selling at our expected price to book multiple of 90% and only modestly above our new price target of $14.25. The challenges to the agency-only model are well known, and rising mortgage rates could provide some relief to expected CPRs and reinvestment rates." Annaly Capital Management closed at $14.66 on Thursday.