Annaly Capital (NLY) Gets a Buy from Argus ResearchWe are reiterating our BUY rating and target price of $21 on Annaly Capital Management Inc. (NYSE: NLY). NLY has historically traded near book value, which ended 4Q24 at $19.15 per share. On the recent earnings call, management estimated that the book value has improved approximately 2% since the end of the quarter, placing it around $19.50. We expect 2-3 rate cuts in the federal funds rate during 2H24, which would lower NLY’s funding costs and increase the net investment spread. We also expect longer term rates to trade in the 4.0%-4.50% range, keeping mortgage rates higher and MBS spreads attractive. We also like the low weighted average coupon of 3.20% in the MSR portfolio and successful non-agency securitizations. NLY invests mainly in U.S.