UPDATE: Jefferies Lowers Target on Annaly Capital Management to $16

Jefferies reiterates its Hold rating on Annaly Capital Management NLY and lowers its price by half a dollar to $16 as the company reports adjusted EPS below estimates. Jefferies says, "NLY reported adjusted EPS of $0.54, $0.03 below the Street and $0.05 below JEFs estimate. The Company reported a marginal book value decline from $16.22 at 3Q11 to $16.06 at 4Q11, a significant 22% Q/Q increase in CPRs from 18 to 22, portfolio contraction of 2% Q/Q, and spread compression from 208bps in 3Q11 to 171bps in 4Q11." NLY closed at $16.55 a share yesterday.