Mortgage REITs Get A Lift From Wells Fargo (NLY, IVR, AGNC, RWT, STWD, CIM)
Shares of Annaly Capital Management (NLY), the largest U.S. mortgage REIT, are higher by half a percent after Wells Fargo initiated coverage of the stock with a “market perform” rating and a valuation range of $16-$17, which is below where the shares currently trade. Still, Annaly’s performance is helping the Mortgage Investment Stocks Index to a 0.9% gain.
“We consider Annaly to be the bellwether in the Agency REIT sector due to (1) having the strongest track record (2) expertise across a broad range of markets (3) and our expectation for steady economic returns,” Wells Fargo said. The bank put an EPS estimate of $2.51 for 2011 and $2.36 for 2012 on Annaly.
Shares of Invesco Mortgage Capital (IVR) are up 2% after Wells Fargo initiated coverage of that name with an “outperform” rating and a valuation range of $21-$23, which at the high end, offers moderate upside to where the stock trades today. The bank said it sees potential total return of 20%-25% over the next 12-18% on Invesco Mortgage placed 2011 and 2012 EPS estimates on the stock of $4.04 and $4.
Investors can track the Mortgage Investment Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
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