
Annaly Capital (NLY) Stock Forecast & Price Target
Annaly Capital (NLY) Analyst Ratings
Bulls say
Annaly Capital Management's stock demonstrates a positive outlook due to significant improvements in key financial metrics, notably a quarter-over-quarter increase in the weighted average actual Conditional Prepayment Rate (CPR) to 8.7%, up from 7.1% in the previous quarter. Additionally, the company experienced a rise in asset yield excluding Premium Amortization Adjustment (PAA), increasing to 5.41% from 5.23%, which indicates enhanced revenue generation capabilities. Furthermore, portfolio spreads, excluding PAA, improved to 1.47% from 1.35%, signifying better risk-adjusted returns on their investments.
Bears say
Annaly Capital Management faces significant risks that could negatively affect its financial outlook, primarily due to the potential impact of fluctuating long-term interest rates. A decline in these rates may lead to increased mortgage refinancing activity, causing heightened mortgage-backed securities (MBS) prepayments, which could adversely affect the company's earnings through premium amortization and reinvestment risks. Furthermore, changes in the pace of the Federal Reserve's agency MBS purchases could influence the asset prices of these securities and present credit loss risks associated with its investments in credit-oriented assets.
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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