Nomura Securities Maintains “Buy” Rating for American Capital Agency Corp. Even Among Legislative Pressure (AGNC)
Analysts at Nomura Securities believe regulatory and legislative risks of real estate investment trusts are overblown and that American Capital Agency Corp. (AGNC) is still a “Buy” rating even under the pressure.
The analysts have sources saying that the potential Menendez-Boxer Bill, which worries investors because it would increase prepayment risk, is unlikely to make it out of Congress. Because of this, the pressure on REITs has been overblown.
Nomura maintains a “Buy” rating for AGNC with a price target of $36.50. That target is a +23.4% increase from Tuesday’s closing price of $29.58.
AGNC shares were down 42 cents, or -1.40%, in morning trading on Wednesday.
The Bottom Line
Shares of American Capital Agency (AGNC) have a 16.90% dividend yield, based on last night’s closing stock price of $29.58. The stock has technical support in the $27-$28 price area. If the shares can firm up, we see overhead resistance around the $31-$32 price levels.
American Capital Agency Corp. (AGNC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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