Piper Jaffray Downgrades TFS Financial (TFSL) to Neutral

August 19, 2016 7:18 AM EDT
Get Alerts TFSL Hot Sheet
Price: $18.88 --0%

Rating Summary:
    2 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
Trade TFSL Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.

Piper Jaffray downgraded TFS Financial (NASDAQ: TFSL) from Overweight to Neutral with a price target of $19. Analyst Matthew M. Breese thinks positives are reflected in valuation.

"As the last large remaining MHC in the country, we remain in favor of Third Federal’s three pronged approach to capital deployment including dividends ($0.50 annually), share repurchases (1.6 million shares repurchased last quarter) and loan growth (balances up 1.3% vs. 1Q). That said, we believe the stock is near fair valued, trading at 96% of estimated fully converted TBV (at an estimated 100% offering price to TBV). However, with share repurchases recently slowing down from ~2.0 million per quarter to ~1.5 million and the recent dividend approval less than we had expected ($0.50 p/s vs. estimated $0.60 p/s), we believe the company is likely to continue to take a slow and steady approach to capital deployment and the valuation will likely remain near current levels over the next 12-18 months. As a result, of this dynamic and the stock near fair value, in our view, we downgrade to Neutral from Overweight," said Breese.

For an analyst ratings summary and ratings history on TFS Financial click here. For more ratings news on TFS Financial click here.

Shares of TFS Financial closed at $18.67 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View, Downgrades

Related Entities

Piper Jaffray

Add Your Comment