Citizens JMP reiterates Market Perform rating on Annaly Capital stock

Published 03/07/2025, 10:12
Citizens JMP reiterates Market Perform rating on Annaly Capital stock

Investing.com - Citizens JMP has reiterated its Market Perform rating on Annaly Capital Management (NYSE:NLY) stock, while raising its earnings estimates for the company. The $11.7 billion mortgage REIT, which offers an impressive 14.5% dividend yield and has maintained dividend payments for 29 consecutive years, currently trades near its InvestingPro Fair Value.

The investment firm increased its 2025 Economic Available Distributable (EAD) estimate for Annaly to $2.90 from a previous forecast of $2.82, representing a 2.8% upward revision.

For 2026, Citizens JMP raised its EAD estimate more substantially to $3.21 from $2.83 previously, a 13.4% increase in projected earnings.

The firm’s estimate for Annaly’s current quarter (2Q25) remains at $0.69 per share, though no comparison to previous estimates was provided in the report.

Citizens JMP maintained its neutral stance on the mortgage real estate investment trust, noting that shares appear "fairly valued at 1.08x current estimated book value versus an Agency MREIT peer median of 0.98x." This assessment aligns with comprehensive analysis available in the InvestingPro Research Report, which provides detailed insights into Annaly’s valuation metrics and peer comparisons.

In other recent news, Annaly Capital Management reported its first-quarter 2025 earnings, surpassing analysts’ expectations with earnings per share (EPS) of $0.72, compared to the forecasted $0.70. However, the company’s revenue of $186.64 million was significantly below the anticipated $449.89 million. Annaly Capital Management also announced an increase in its quarterly dividend to $0.70 per share, up from $0.65, reflecting confidence in its earnings momentum. RBC Capital Markets adjusted its outlook on Annaly Capital by lowering the price target to $21 from $22, while maintaining an Outperform rating. The adjustment was based on a review of Annaly’s first-quarter performance, with RBC analysts expressing confidence in the company’s dividend stability. Annaly Capital has indicated plans to sustain the $0.70 per share quarterly dividend throughout 2025. The company’s diversified capital allocation strategy and robust liquidity were noted as key factors supporting the Outperform rating. These developments provide investors with a detailed view of Annaly Capital Management’s recent financial performance and strategic outlook.

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