
Annaly Capital (NLY) Stock Forecast & Price Target
Annaly Capital (NLY) Analyst Ratings
Bulls say
Annaly Capital Management has demonstrated robust 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 positioning at 5.03%. Additionally, the company's Mortgage Servicing Rights (MSR) portfolio grew by 8.6% over the quarter to $3.8 billion, signifying a stable 19% of capital, contributing positively to overall liquidity and cash position which rose to $5.9 billion. The residential credit portfolio also saw a notable 16% increase to $8.0 billion, as the firm expanded its correspondent loans, indicating strong demand driven by favorable mortgage rates and anticipated growth in a lower rate environment.
Bears say
The analysis of Annaly Capital Management's financial performance indicates a declining outlook primarily due to the reduced investment returns in its core segments, with agency mortgage-backed securities (MBS) offering illustrative return profiles of only 13%-15%, a decrease compared to previous periods. Additionally, the net investment spread has narrowed by 1 basis point to 145 basis points, alongside a slight decline in net interest margin, reflecting increased pressure on profitability amid changing market conditions and potential shifts in Federal Reserve policy. Furthermore, rising prepayment risks associated with lower long-term interest rates, combined with the potential adverse effects of GSE reform on agency MBS markets, contribute to a challenging operational environment for the company going forward.
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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