FBR Capital Raises Price Target on IberiaBank Corp. (IBKC) to $73; Reiterates Outperform
- Wall St. opens higher as M&A activity boosts confidence
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) to Acquire B/E Aerospace (BEAV) for $6.4B
- TD Ameritrade (AMTD) to Acquire Scottrade in $4B Cash & Stock Deal
- Pre-Open Stock Movers 10/24: (BEAV) (JPEP) (HLT) Higher; (BAS) (INO) (ADRO) Lower (more...)
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
FBR Capital reiterated an Outperform rating on IberiaBank (NASDAQ: IBKC), and raised the price target to $73.00 (from $70.00). FBR believes that crude oil prices above $40/bbl are a positive for the energy provision outlook. The prices have fluctuated from $50/bbl to $40/bbl, and are currently at $44.83/bbl. Further, IBKC's current 2016 loan loss provisioning guidance is $45M, based on oil prices below $40/bbl.
Analyst Christopher Nolan commented, "As 3Q16 unfolds, we are raising our price target for IBKC to $73 from $70 and reiterating our Outperform rating. We believe broader macro trends are shaping up to provide a proverbial tailwind to IBKC’s earnings in the second half of 2016. More specifically, we think crude oil prices above $40/bbl are a positive for the energy provision outlook, we view strong nationwide mortgage loan origination volumes as a positive for mortgage banking income in 3Q16, and we do not think IBKC’s commercial real estate (CRE) exposure is likely to become a disproportionate overhang to its share price valuations relative to peers. Further, given that it is highly asset sensitive, we think IBKC’s share price is likely to benefit from any increased market anticipation of a rate rise by the Fed in 2H16."
Shares of IberiaBank closed at $67.76 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Raises Price Target on Microsoft (MSFT) to $65 Following 1Q Beat
- KLR Group Raises Price Target on SM Energy (SM) to $59; Reiterates Buy
- UPDATE: Seaport Global Securities Starts Canadian Pacific Railway Limited (CP) at Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesCrude Oil, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!