JP Morgan Chase (NYSE: JPM) analysts downgraded Annaly Capital (NYSE: NLY) from “Overweight” to “Neutral”, changing the company’s price target to $19.00.
Annaly Capital Management Inc owns and manages a portfolio of real estate-related investment securities, such as mortgage pass-through certificates, collateralized mortgage obligations (CMOs), agency callable debentures and other securities that are backed by mortgage loans.
Before the downgrade by JP Morgan Chase, the latest analyst activity on Annaly was from Stern Agee, which upgraded Annaly Capital from a “neutral” rating to a “buy” rating in early February with a target price of $19.75.
Pipar Jaffray downgraded Annaly Capital in January, giving the firm an “underweight” rating, down from a “neutral” rating. Pipar Jaffray’s current price target on Annaly is $15.00
The Piper Jaffray analyst commented that “We view NLY as one of the premier mortgage REITs with a top-notch management team. However, NLY is the only mortgage REIT in our coverage universe. We expect NLY to underperform the rest of our coverage universe over the next year as we believe the economy will continue to gradually strengthen, prompting the Fed to begin raising rates in mid-2010 from the emergency level of 0%-0.25%.”
