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Compass Point Starts First Marblehead (FMD) at Buy

July 10, 2013 2:26 PM EDT Send to a Friend
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Price: $4.81 --0%

Rating Summary:
    0 Buy, 1 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 11 | New: 4
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Compass Point initiated coverage on First Marblehead (NYSE: FMD) with a Buy rating and a price target of $2.00. Analyst Michael Tarkan sees improving fundamentals.

"FMD has reinvented itself post-credit crisis through a series of acquisitions and its new 'Monogram' lending platform which provides student loans on an internal and partnered basis. Revenues are now more diversified, expenses are improving, and cash usage should continue to decline. While we may have to wait until early 2015 for a return to profitability, with shares trading at just $1.49, or 86% of cash, we view FMD as resembling a call option on the student lending industry, with improving fundamentals and several catalysts ahead," said Tarkan.

For an analyst ratings summary and ratings history on First Marblehead click here. For more ratings news on First Marblehead click here.

Shares of First Marblehead closed at $1.49 yesterday.




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