Wunderlich Raises PT On NLY To $19

Wunderlich Securities has raised its price target from $18 to $19 and is maintaining its Buy rating on Annaly Capital Management NLY following 1Q11 results from the company. In the report, Wunderlich writes, “Annaly Capital Management (NLY) reported 1Q11 GAAP EPS of $0.92 per share, with stronger spread income than we had estimated, in additional to higher trading gains. We calculate core EPS of $0.69 per share, which we believe is indicative of operating earnings used to fund the dividend. We are increasing our 2011 earnings estimate from $2.46 to $3.00, not only accounting for the 1Q11 upside, but reflecting the earnings power of the reconfigured portfolio.” NLY closed yesterday at $17.93.