UPDATE: Jefferies Upgrades American Capital Agency to Buy

Jefferies is out with its report today on American Capital Agency (NASDAQ: AGNC), upgrading AGNC to Buy from Hold.

In its report, Jefferies writes, "With a portfolio that is overweight higher coupon longer duration MBS, the Fed on hold until 2013, and one of the best management teams in the mortgage REIT space, we are upgrading shares of AGNC from Hold to Buy."

Jefferies raises its PT to $33 from $30.

At the time of posting, shares of AGNC were trading pre-market at $29.20, up 1.57% from Thursday's close.