Jefferies Reiterates Buy on Santander Consumer USA (SC) Following Portfolio Analysis

September 29, 2016 6:50 AM EDT
Get Alerts SC Hot Sheet
Price: $13.48 +0.75%

Rating Summary:
    4 Buy, 14 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
Trade SC Now!
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.

Jefferies reiterated a Buy rating and $15.00 price target on Santander Consumer USA Holdings Inc. (NYSE: SC) following an analysis of the company's loan portfolio. Through the study, Jefferies believes that it is possible NCO rates may stabilize or ease into CY17. A 10bps reduction in NCOs results in a 10% increase in EPS due to lower NCOs and lower ALLL requirements.

Analyst John Hecht commented, "In this note, we pose that credit headwinds in CY15 have begun to abate. In our analysis, we point out that even stabilizing credit may benefit SC earnings and the stock valuation, given improved earnings visibility and the lack of further ALLL building. Given the stock appears to be pricing in distressed results, the combination of an attractive valuation along with emerging (potential) credit improvements leave us constructive on the name."

For an analyst ratings summary and ratings history on Santander Consumer USA Holdings Inc. click here. For more ratings news on Santander Consumer USA Holdings Inc. click here.

Shares of Santander Consumer USA Holdings Inc. closed at $12.14 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

Jefferies & Co, Earnings

Add Your Comment