JPMorgan has adjusted its forecast for Annaly Capital Management (NLY, Financial), reducing the firm's price target from $21 to $19 while maintaining an Overweight rating. This revision comes as part of a broader first-quarter assessment for mortgage real estate investment trusts (MREITs).
The decision reflects concerns over potential economic headwinds, as lower short-term interest rates are providing relief to borrowers by reducing financing costs. However, this also raises the possibility of a looming recession, which could impact occupancy rates and rent growth, complicating the resolution of distressed assets.
The analyst highlights that ongoing macroeconomic uncertainty has created a more balanced risk and reward scenario, leading to tempered confidence in the MREIT sector. Despite these challenges, Annaly Capital continues to attract an Overweight rating from JPMorgan, signaling optimism about its long-term prospects despite the evolving economic landscape.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Annaly Capital Management Inc (NLY, Financial) is $20.92 with a high estimate of $23.00 and a low estimate of $18.00. The average target implies an upside of 16.45% from the current price of $17.96. More detailed estimate data can be found on the Annaly Capital Management Inc (NLY) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Annaly Capital Management Inc's (NLY, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
