UPDATE: Citigroup Reiterates Neutral Rating, Lowers PT on Annaly Capital Management Following Q3 Results Miss

In a report published Tuesday, Citigroup analyst Donald Fandetti reiterated a Neutral rating on Annaly Capital Management NLY, but lowered the price target from $12.00 to $10.00. In the report, Citigroup noted, “NLY reported core EPS of $0.28, below our and cons estimates of $0.34. Core EPS excludes the effect of unrealized gains/losses on hedges, and other one-time gains/losses. Fully diluted GAAP EPS was $0.18, driven by losses in the swap portfolio. Book value declined -2.5% to $12.70 from $13.03, an improvement from last qtr's -14% decline, but still greater than AGNC's -1% decline in Q3. NLY's previously announced dividend was $0.35, though we expect further reductions.” Annaly Capital Management closed on Monday at $10.38.