Analysts at Nomura Securities believe regulatory and legislative risks of real estate investment trusts are overblown and that American Capital Agency Corp. (AGNC) is still a “Buy” rating even under the pressure.
The analysts have sources saying that the potential Menendez-Boxer Bill, which worries investors because it would increase prepayment risk, is unlikely to make it out of Congress. Because of this, the pressure on REITs has been overblown.
Nomura maintains a “Buy” rating for AGNC with a price target of $36.50. That target is a +23.4% increase from Tuesday’s closing price of $29.58.