Wells Fargo Initiating Coverage On Annaly Capital Management

Wells Fargo is out with a research report on Annaly Capital Management, Inc. NLY with a Market Perform rating and a $16-$17 valuation on shares. In the research report, Wells Fargo writes, "We are initiating coverage of Annaly Capital Management, Inc. (NLY) with a Market Perform rating and a valuation range of $16-17. We consider NLY to be the bellweather in the Agency REIT sector due to (1) having the strongest track record, (2) expertise across a broad range of markets, and (3) our expectation for steady economic returns. We are establishing 2011 and 2012 EPS estimates of $2.51 and $2.36, respectively. Our $16-17 valuation range is derived by assigning a 1.0-1.1x price/book multiple on NLY's most recently reported NAV of $15.76." Shares of NLY closed at $17.79 yesterday.