JPMorgan analysts upgraded AGNC Investment Corp. to "overweight" from "neutral" due to what they called the company's strong risk/reward profile heading into 2019.

"We believe AGNC remains one of the best-managed" mortgage REITs, and the acquisition of its external manager is "a long-term positive," the analysts said.

AGNC's portfolio of mortgage-backed securities could benefit from "a pause" in Federal Reserve tightening in 2019, they wrote. It also has a high market capitalization and more trading liquidity than most mortgage REITs.

The analysts raised the company's price target to $18 from $17.50.