Jones Trading initiates AGNC Investment stock with Buy, sets $10.75 target By Investing.com
© Reuters.
On Friday, Jones Trading initiated coverage on shares of AGNC Investment Corp (NASDAQ:), a real estate investment trust, with a Buy rating and a price target set at $10.75. The firm’s analysis anticipates that AGNC will perform well due to expected stability or easing in monetary policy. This environment is projected to enable the company to generate mid- to high-teen returns on equity (ROEs) and/or significant book value appreciation.
The price target suggested by Jones Trading is based on a 1.05 times target price-to-book value per share (P/BVPS) and a 12.5% dividend yield. According to the firm’s projections, reaching this price target would correspond to an expected total return of 25% over the next 12 months.
AGNC Investment Corp specializes in investments primarily in residential mortgage-backed securities for which the principal and interest payments are guaranteed by a U.S. government agency or a U.S. government-sponsored entity. The firm’s positive outlook for AGNC is tied to the belief that the company is a leading pure-play agency mortgage REIT, which is well-positioned to benefit from the current economic and policy environment.
The analyst’s statement highlighted AGNC’s status as a premier pure-play agency mortgage REIT, suggesting that the company is poised to outperform its peers. The expected policy stability or easing is seen as a favorable condition for AGNC to thrive and deliver substantial returns to its shareholders.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
