Janney Montgomery Scott starts ‘sector leader’ Annaly Capital at Buy

As previously reported, Janney Montgomery Scott initiated coverage of Annaly Capital with a Buy rating and $21 fair value estimate. Mortgage spreads, the primary driver of book value, are wider than long-term averages and likely to tighten as fixed income volatility declines, driving book value higher, the analyst tells investors. The company’s scale and internal management structure make the stock a “sector leader,” as well as “a liquid and highly efficient way to invest in the broader MBS sector,” contends the analyst, who expects mid-single growth in book value per share along with multiple expansion.