Analyst Donald Fandetti from Wells Fargo reiterated a Buy rating on AGNC Investment (AGNC – Research Report) and decreased the price target to $10.00 from $11.00.
Donald Fandetti has given his Buy rating due to a combination of factors that highlight the potential for AGNC Investment’s stock. The company offers an attractive dividend yield of 17%, which presents a compelling risk/reward scenario for investors. Despite the volatility in agency MBS spreads driven by tariff uncertainties, AGNC’s new investment returns remain promising.
Fandetti notes that AGNC’s Q1 2025 core earnings per share exceeded expectations, driven by higher net interest income and TBA dollar roll income. Although the book value per share has decreased, the regulatory relief anticipated from banks is expected to boost demand for agency MBS. Additionally, the company’s leverage and hedging strategies are well-managed, supporting the positive outlook for AGNC’s stock.
In another report released today, KBW also maintained a Buy rating on the stock with a $9.50 price target.