American Capital Agency (AGNC) - Bull of the Day

By Zacks | June 12, 2012 AAA

We are changing our long-term recommendation for American Capital Agency (AGNC) from Neutral to Outperform, backed by its strong first quarter 2012 results and a healthy year-over-year earnings and revenue increase. American Capital Agency focuses exclusively on fixed-rate agency securities guaranteed by the U.S. government, which limits its credit risks.



American Capital Agency is also among a selected group of companies that have increased their dividend during the economic crisis. The company paid a total of $1.5 billion in dividends or $20.11 per share since its initial public offering in May 2008.



Our long-term Outperform recommendation on the stock indicates that it would perform well above the broader market. Our target price of $39.00, 6.0X 2012 EPS, reflects this view.
 
To read this article on Zacks.com click here.



You May Also Like

Related Analysis
  1. Stock Analysis

    T-Mobile US Unveils Data Rollover Plan, Upgrades Network - Analyst Blog

  2. Stock Analysis

    Ericsson-Ethio Telecom to Boost 2G/3G Network in Ethiopia - Analyst Blog

  3. Stock Analysis

    Unum Group Shares Operational & Capital Plan with Investors - Analyst Blog

  4. Stock Analysis

    DuPont Selling Neoprene to Denka Performance Elastomer - Analyst Blog

  5. Stock Analysis

    Progressive to Insure Home & Auto with ARX Majority Stake - Analyst Blog

Trading Center