Keefe Bruyette Lifts AGNC Target Ahead of 2026 Outlook

AGNC Investment Corp. (NASDAQ:AGNC) is included among the 13 Highest Paying Monthly Dividend Stocks to Buy.

On December 18, Keefe Bruyette analyst Bose George raised his price target on AGNC Investment Corp. (NASDAQ:AGNC) to $11 from $10.50 and kept an Outperform rating. The firm said it remains most constructive on agency MBS REITs heading into 2026.

AGNC Investment Corp. (NASDAQ:AGNC) sits right in the middle of the housing and rate cycle. When rates move, the business feels it quickly. The past few years were tough as the Federal Reserve pushed interest rates higher to curb inflation. That backdrop has started to change. The Fed has already lowered rates over the past year and a half, with more cuts expected.

Lower rates tend to help AGNC’s model. They can improve funding costs and make the spread math work a little better. For investors, that matters. AGNC Investment Corp. (NASDAQ:AGNC) also operates differently from a typical REIT. It doesn’t own buildings or collect rent. Instead, it invests in mortgage-backed securities. The company makes money from the spread between what it pays to borrow and what it earns on its mortgage assets.

To do that, AGNC borrows on a short-term basis. It relies on tools like repurchase agreements and short-term debt, usually with maturities of one year or less, to finance its portfolio.

While we acknowledge the potential of AGNC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.