Analyst Donald Fandetti from Wells Fargo reiterated a Buy rating on Annaly Capital (NLY – Research Report) and keeping the price target at $23.00.
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Donald Fandetti has given his Buy rating due to a combination of factors that highlight Annaly Capital’s resilience and strategic positioning in a volatile market. The company reported a solid first quarter with core earnings per share surpassing both the analyst’s and the consensus estimates, demonstrating strong operational performance. Despite a slight decline in book value, Annaly’s diversified residential mortgage platform and low leverage provide a robust foundation to navigate financial volatility.
Moreover, Annaly’s decision to increase its quarterly dividend reflects management’s confidence in sustaining shareholder returns, with a notable dividend yield of 14.2%. The company’s strategic allocation adjustments, such as increasing equity in agency MBS, further strengthen its portfolio. Fandetti’s price target for Annaly remains at $23, based on a favorable valuation multiple, underscoring the potential for future growth and stability in earnings.
In another report released yesterday, KBW also maintained a Buy rating on the stock with a $20.15 price target.