Wunderlich Maintains Buy on Annaly Capital Management

Wunderlich is out with its report today on Annaly Capital Management NLY, maintaining Buy. In its report, Wunderlich writes, "Annaly Capital Management reported 2Q11 core EPS of $0.71, in line with our estimate of $0.68. The company also reported GAAP EPS of $0.14. Accounting requires recognition of realized and unrealized gains and losses on the GAAP income statement, though these are difficult to project. In terms of value creation, tangible book value increased by $0.76, plus $0.14 in GAAP EPS, for total value creation of $0.90, or 5.7% in the quarter (not annualized). We rate NLY shares Buy with a $19 price target, based on historical and projected value creation." At the time of posting, shares of NLY were trading pre-market at $17.67, up 1.03% from Monday's close.