Wells Fargo analyst Donald Fandetti has maintained their bullish stance on NLY stock, giving a Buy rating today.
Donald Fandetti has given his Buy rating due to a combination of factors focusing on Annaly Capital’s strategic positioning and market conditions. The company recently highlighted its significant scale and diversification in residential mortgage finance during an investor day in New York City, which gives it a competitive edge and supports its partnerships across the housing finance sector. The stock offers an attractive risk/reward proposition, particularly with its double-digit dividend yield of 13.1%, which is compelling for investors.
Furthermore, Fandetti noted that the current market environment, with wide agency MBS spreads and potential tightening due to reduced volatility and increased demand, provides favorable conditions for Annaly. The company is also implementing a long-term capital allocation strategy aimed at reducing leverage and interest rate sensitivity, which should further enhance its financial stability. Annaly’s robust risk management, liquidity, and growing partnerships through its Onslow Bay Correspondent Channel also contribute to its strong market position, justifying the Buy recommendation.
Fandetti covers the Financial sector, focusing on stocks such as Capital One Financial, Ally Financial, and American Express. According to TipRanks, Fandetti has an average return of 12.3% and a 65.61% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $21.50 price target.
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Annaly Capital (NLY) Company Description:
Annaly Capital Management, Inc. engages in the investment and financing of residential and commercial assets. It operates through the following investment groups: Agency, Residential Credit, Commercial Credit, and Middle Market Lending. The Agency group invests in agency mortgage-backed securities. The Residential Credit group involves non-agency residential mortgage assets within securitized products and whole loan markets. The Commercial Real Estate group includes commercial mortgage, loans, securities, and other commercial real estate debt, and equity investments. The Middle Market Lending group provides financing to private equity backed middle market businesses across the capital structures. The company was founded by Michael A. J. Farrell and Wellington Jamie Denahan-Norris on November 25, 1996 and is headquartered in New York, NY.
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