Annaly Capital price target raised to $22 from $21 at RBC Capital

RBC Capital raised the firm’s price target on Annaly Capital (NLY) to $22 from $21 and keeps an Outperform rating on the shares ahead of the company’s Q4 results this week. The firm is positive on Annaly’s well-diversified capital allocation, including its MSR – Mortgage Servicing Rights – portfolio, and strong liquidity position, the analyst tells investors in a research note. There is a favorable agency MBS market backdrop with mortgage spreads remaining at wider than historical levels, RBC adds.