
Annaly Capital (NLY) Stock Forecast & Price Target
Annaly Capital (NLY) Analyst Ratings
Bulls say
Annaly Capital Management has demonstrated significant growth in its core agency portfolio, which increased by 10% to $87.3 billion, representing 64% of its capital, while maintaining a stable average coupon rate of 5.03%. The company's residential credit portfolio also saw a 4% increase to $6.9 billion, supported by robust correspondent loan activity and an elevated quarterly lock volume of $6.2 billion, highlighting attractive market conditions. Additionally, total portfolio assets rose by $8.3 billion to $97.8 billion, accompanied by an increase in liquidity and cash position to $5.9 billion, positioning the company favorably for modest leverage growth and further expansion in residential credit.
Bears say
Annaly Capital Management faces significant challenges that contribute to a negative financial outlook. The company is vulnerable to adverse impacts from potential Federal Reserve actions regarding agency mortgage-backed securities (MBS) purchases, which could lead to fluctuations in asset prices and heightened reinvestment risks as mortgage refinancing levels rise, resulting in premium amortization losses. Additionally, increased exposure to credit-oriented assets and uncertainty from potential government-sponsored enterprise (GSE) reforms could lead to credit losses and decreased liquidity, ultimately impacting the company's earnings and book value per share.
This aggregate rating is based on analysts' research of Annaly Capital and is not a guaranteed prediction by Public.com or investment advice.
Annaly Capital (NLY) Analyst Forecast & Price Prediction
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