Cantor Fitzgerald Cuts Price Targets on Regional Bank Stocks, Reaffirms Bullish Stance
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Rating Summary:
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Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 10
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Cantor Fitzgerald remains bullish on the small mid–cap banks and has made a number of price target and estimate changes on its regional bank universe. The new estimates are due to the Fed's new posture on the fed funds rate and a reduced outlook for economic growth.
The firm upgraded its rating on shares of Cathay General Bancorp (Nasdaq: CATY) from its previous rating of Hold to Buy. They believe that shares are over sold based on their 2012 EPS estimate of $1.48. Their 2012 EPS estimates assume no loan growth and a wider net interest margin.
Cantor Fitzgerald reaffirmed its Buy rating on shares Cullen/Frost Bankers (NYSE: CFR) and cut its price target from $66 to $55. This stock is one of the firm’s top lower-risk picks and is believed to be one of the best defensive plays among smid-cap banks, due to the time-tested conservatism of its senior management team. The firm lowered its 2012 EPS estimate from $4.24 to $4.00.
Shares of CVB Financial Corp. (Nasdaq: CVBF) continue to be rated as a Buy while its price target was cut from $12 to $10. The firm rank shares of CVBF as one of its top higher-(perceived)- risk picks, which reflects its near-term catalyst. For 2012, the firm is forecasting EPS of $0.80.
City Nation Corp. (NYSE: CYN) remains to be rated at Buy, but the firm lowered its price target from $72 to $53 on the stock. The firm also cut its 2012 EPS estimate from $4.64 to $4.00 due to the Fed's new posture on the fed funds rate.
The firm reaffirmed its Hold rating on PacWest Bancorp (Nasdaq: PACW) and lowered its price target from $22 to $16. Cantor Fitzgerald also raising its 2012 EPS estimate from $1.24 to $1.47, The company should have more stable net interest margins in 2012 with the feds rate holding till 2013.
Shares of Signature Bank (Nasdaq: SBNY) continue to be rated as a Buy, but the firm reduced its 2012 EPS estimate from $72 to $58. Cantor Fitzgerald cut its 2012 EPS estimate from $4.35 to $4.00. Remains one of the firm’s top low risk picks due to their business model.
Cantor Fitzgerald reiterated its Buy rating on shares of SVB Financial (Nasdaq: SIVB) while lowering its price target from $75 to $56. They also lowered their 2012 EPS estimate from $4.10 to $3.75 to go inline with the earnings related to SVB Financial's strong asset-sensitivity.
Shares of Western Alliance (NYSE: WAL) remain to be rated as a Buy. The firm lowered its price target on the shares from $10 to $8 and reaffirmed its 2012 EPS estimate of $0.66.
Umpqua Holding Corp. (Nasdaq: UMPQ) continues to be rated as a Hold although the firm cut its price target on the shares from $13 to $10. Cantor Fitzgerald reduced its 2012 EPS estimate from $0.90 to $0.81 to adjust for estimated earnings related to loan growth and to Umpqua's asset-sensitivity
The firm is maintaining its Hold rating on shares of Washington Federal (Nasdaq: WFSL), but is lowering its price target from $18 to $16 and is increasing its fiscal 2012 EPS estimate from $1.34 to $1.53.
Cantor Fitzgerald reaffirmed its Buy rating on shares of Zions Bancorporation (Nasdaq: ZION) while lowering its price target from $31 to $23. The firm believes that Zionss will be able to exit TARP by year-end 2011 and set its 2012 EPS estimate at $2.00.
Shares of Westamerica Banc. (Nasdaq: WABC) continue to be rated at a Buy from the firm, but their price target is now $50, down from its previous price of $58. Westamerica is one of the firm’s top lower-risk picks, and, is probably the best defensive play among smid-cap banks, due to the prudent management of CEO David Payne.
Cantor Fitzgerald lowered its price target on shares of East West Banc. (Nasdaq: EWBC) from $26 to $20 while reiterating its Buy rating. The firm did not changing its 2012 EPS estimate of $1.80, which assumes very modest loan growth and a stable core net interest margin.
An analyst at Cantor Fitzgerald comments, "We note that higher interest rates are not the only factor that can result in wider NIMs. Loan growth, less loan shrinkage and credit quality improvement can also improve NIMs, and net interest income. SVB Financial should have strong loan originations, City National should have less loan shrinkage, and Zions should have materially better credit quality."
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The firm upgraded its rating on shares of Cathay General Bancorp (Nasdaq: CATY) from its previous rating of Hold to Buy. They believe that shares are over sold based on their 2012 EPS estimate of $1.48. Their 2012 EPS estimates assume no loan growth and a wider net interest margin.
Cantor Fitzgerald reaffirmed its Buy rating on shares Cullen/Frost Bankers (NYSE: CFR) and cut its price target from $66 to $55. This stock is one of the firm’s top lower-risk picks and is believed to be one of the best defensive plays among smid-cap banks, due to the time-tested conservatism of its senior management team. The firm lowered its 2012 EPS estimate from $4.24 to $4.00.
Shares of CVB Financial Corp. (Nasdaq: CVBF) continue to be rated as a Buy while its price target was cut from $12 to $10. The firm rank shares of CVBF as one of its top higher-(perceived)- risk picks, which reflects its near-term catalyst. For 2012, the firm is forecasting EPS of $0.80.
City Nation Corp. (NYSE: CYN) remains to be rated at Buy, but the firm lowered its price target from $72 to $53 on the stock. The firm also cut its 2012 EPS estimate from $4.64 to $4.00 due to the Fed's new posture on the fed funds rate.
The firm reaffirmed its Hold rating on PacWest Bancorp (Nasdaq: PACW) and lowered its price target from $22 to $16. Cantor Fitzgerald also raising its 2012 EPS estimate from $1.24 to $1.47, The company should have more stable net interest margins in 2012 with the feds rate holding till 2013.
Shares of Signature Bank (Nasdaq: SBNY) continue to be rated as a Buy, but the firm reduced its 2012 EPS estimate from $72 to $58. Cantor Fitzgerald cut its 2012 EPS estimate from $4.35 to $4.00. Remains one of the firm’s top low risk picks due to their business model.
Cantor Fitzgerald reiterated its Buy rating on shares of SVB Financial (Nasdaq: SIVB) while lowering its price target from $75 to $56. They also lowered their 2012 EPS estimate from $4.10 to $3.75 to go inline with the earnings related to SVB Financial's strong asset-sensitivity.
Shares of Western Alliance (NYSE: WAL) remain to be rated as a Buy. The firm lowered its price target on the shares from $10 to $8 and reaffirmed its 2012 EPS estimate of $0.66.
Umpqua Holding Corp. (Nasdaq: UMPQ) continues to be rated as a Hold although the firm cut its price target on the shares from $13 to $10. Cantor Fitzgerald reduced its 2012 EPS estimate from $0.90 to $0.81 to adjust for estimated earnings related to loan growth and to Umpqua's asset-sensitivity
The firm is maintaining its Hold rating on shares of Washington Federal (Nasdaq: WFSL), but is lowering its price target from $18 to $16 and is increasing its fiscal 2012 EPS estimate from $1.34 to $1.53.
Cantor Fitzgerald reaffirmed its Buy rating on shares of Zions Bancorporation (Nasdaq: ZION) while lowering its price target from $31 to $23. The firm believes that Zionss will be able to exit TARP by year-end 2011 and set its 2012 EPS estimate at $2.00.
Shares of Westamerica Banc. (Nasdaq: WABC) continue to be rated at a Buy from the firm, but their price target is now $50, down from its previous price of $58. Westamerica is one of the firm’s top lower-risk picks, and, is probably the best defensive play among smid-cap banks, due to the prudent management of CEO David Payne.
Cantor Fitzgerald lowered its price target on shares of East West Banc. (Nasdaq: EWBC) from $26 to $20 while reiterating its Buy rating. The firm did not changing its 2012 EPS estimate of $1.80, which assumes very modest loan growth and a stable core net interest margin.
An analyst at Cantor Fitzgerald comments, "We note that higher interest rates are not the only factor that can result in wider NIMs. Loan growth, less loan shrinkage and credit quality improvement can also improve NIMs, and net interest income. SVB Financial should have strong loan originations, City National should have less loan shrinkage, and Zions should have materially better credit quality."
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