Annaly Capital price target raised to $23.50 from $22 at Compass Point

Compass Point analyst Merrill Ross raised the firm’s price target on Annaly Capital to $23.50 from $22 and keeps a Buy rating on the shares. With the market now pricing in the start of monetary policy easing in September, the firm anticipates a turn in the cycle that could usher in significant MBS spread tightening. In that context, it is raising its 2024 EAD estimate to $2.75 from $2.68 and launching a 2025 estimate of $3.10, both of which it notes are above the current consensus.