Wunderlich Maintains Buy on American Capital Agency (AGNC)

Wunderlich is out with its report today on American Capital Agency AGNC, maintaining Buy. In a note to clients, Wunderlich writes, "Buy-rated American Capital Agency Corp. continued its aggressive equity issuance campaign, pricing shares earlier this week through a bought transaction as well as issuing shares in a continuous offering program and dividend reinvestment plan. Assuming the distribution of the overallotment option, the company added over $890 million of capital to its equity account, bringing the year-to-date total to over $1.7 billion of new capital. Our price target of $34 per share is based on a 1.3x multiple of book value, which we believe is justified by AGNC's potential to sustain its peer-group-leading ROEs." Shares of AGNC closed Thursday at $28.82, up 0.31% from Wednesday's close.