BTIG Upgrades Annaly Capital (NLY) to Buy Amid Rising Interest Rate Volatility

Core Viewpoint - Annaly Capital Management, Inc. (NYSE:NLY) is identified as one of the most undervalued REIT stocks currently available for investment, with a recent upgrade from Neutral to Buy by BTIG, which has set a price target of $25 for the shares [1]. Group 1: Investment Potential - The firm anticipates that Annaly Capital Management, Inc. (NYSE:NLY) could see additional upside if mortgage-backed securities spreads compared to Treasuries, currently at approximately 115 basis points, narrow further [2]. - A more stable stock valuation for NLY is expected if spreads expand again amid rising interest rate volatility [2]. Group 2: Market Conditions - BTIG has noted a decline in long-term interest rates, which may increase prepayment vulnerability in NLY's mortgage servicing rights (MSR) and non-qualified mortgage (non-QM) portfolios [3]. - The firm's assessment includes an expectation that the Trump presidency may attempt to engineer lower mortgage rates, potentially benefiting NLY [3]. Group 3: Company Overview - Annaly Capital Management, Inc. (NYSE:NLY) operates as a diversified capital manager in the mortgage finance sector, with a portfolio that includes securities, loans, and equity in the mortgage finance market [3].