UPDATE: Sterne Agee Upgrades American Capital Agency to Buy Ahead of Earnings

Sterne Agee raised its rating on American Capital Agency

from Neutral to Buy (short-term) and established a $34 price target. Sterne Agee noted, "We are upgrading the shares of AGNC to short-term Buy ahead of earnings reports and into year end and establishing a $34 price target. In our view, the recent market volatility has given us a good entry price below book value and spreads on new investment - while lower - will take some time to influence the dividend level supported by undistributed taxable income and gains from this quarter." American Capital Agency closed at $32.59 on Friday.