UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on American Capital Agency Corp. Following Weaker Core EPS

In a report published Friday, Credit Suisse analyst Douglas Harter reiterated an Outperform rating on American Capital Agency Corp. AGNC, but slightly lowered the price target from $34.00 to $33.00. In the report, Harter noted, “AGNC reported core EPS of $0.69 ($0.78 including $0.09/share of premium amortization benefit due to change in projected CPR) for the first quarter, $0.14 lower than our estimate. Inclusive of dollar roll income (which reflects the true economics of the portfolio), EPS were $1.09 compared to our estimate of $1.17. The miss relative to our estimates was driven by higher swap cost as the company added coverage. We are lowering our 2013 through 2015 core EPS estimates to $2.73 (from $3.20), $3.08 (from $3.60), and $3.60 (from $3.90). Importantly our core plus dollar roll income estimates are $4.57 (from $4.60), $4.00 (from $4.05) for 2013 and 2014.” American Capital Agency Corp. closed on Thursday at $33.10.