Update shared on23 Oct 2025
Fair value Increased 1.15%Annaly Capital Management's analyst price target has been raised by $0.25 to $21.73, as analysts cite improving mortgage market trends and increased refinancing activity, which support a more optimistic outlook.
Analyst Commentary
Recent updates from Street research firms reflect growing optimism in the outlook for Annaly Capital Management, though certain risks and uncertainties remain part of the broader discussion among analysts.
Bullish Takeaways- Bullish analysts highlight a positive shift in the mortgage market, as 30-year mortgage rates have decreased to 6.3 percent from earlier highs above 7 percent.
- Tighter agency spreads have contributed to improving market conditions, potentially supporting Annaly's core business model and profitability.
- An uptick in refinancing activity stands out, with mortgage application volumes, especially on the refinancing side, rising 38 percent sequentially. This suggests higher demand and potential revenue growth.
- Recent price target increases reflect expectations of improved execution and enhanced valuation as market dynamics tilt favorably for mortgage-focused companies.
- Some analysts note the mortgage market is still not at a fully "normalized" level, indicating lingering structural uncertainty and the potential for volatility.
- Despite positive trends, tightening spreads could compress margins if not matched by sustained increases in loan volumes or asset growth.
- Elevated sensitivity to interest rate fluctuations may expose Annaly Capital to renewed market pressures should rates reverse course or macro conditions shift unexpectedly.
What's in the News
- Annaly Capital Management, Inc. has been removed from the FTSE All-World Index (USD) (Key Developments).
- From April 1, 2025 to June 30, 2025, the company completed the repurchase of 0 shares for $0 million under the buyback announced on January 2, 2025 (Key Developments).
Valuation Changes
- The consensus analyst price target has risen slightly, increasing from $21.48 to $21.73.
- The discount rate has fallen modestly, moving from 10.47 percent to 10.34 percent.
- The revenue growth projection remains unchanged at approximately 48.4 percent.
- The net profit margin has softened marginally, declining from 92.46 percent to 91.75 percent.
- The future P/E ratio has edged higher, rising from 7.03x to 7.14x.
Disclaimer
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