S&P Equity Research Downgrades IndyMac Bancorp (NDE) to Sell
NDE Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
S&P Equity Research downgrades IndyMac Bancorp (NYSE: NDE) from Hold to Sell.
S&P analyst, S. Plesser, says, "Our downgrade reflects our view that default rates will pick up significantly for Alt-A loans. As mentioned in an earlier research note, NDE's 30-day delinquency rate for its Alt-A loans at 12/31/06 totaled 5.4% compared to 22.7% for subprime loans. But in a difficult housing market, we think defaults on Alt-A loans, roughly 80% of NDE production, will rise significantly because of an inability for borrowers to refinance. We are lowering our target price by $6 to $26, 6.6X the $3.92 EPS we see in '07, below historical P/Es to reflect likely further credit deterioration."
S&P analyst, S. Plesser, says, "Our downgrade reflects our view that default rates will pick up significantly for Alt-A loans. As mentioned in an earlier research note, NDE's 30-day delinquency rate for its Alt-A loans at 12/31/06 totaled 5.4% compared to 22.7% for subprime loans. But in a difficult housing market, we think defaults on Alt-A loans, roughly 80% of NDE production, will rise significantly because of an inability for borrowers to refinance. We are lowering our target price by $6 to $26, 6.6X the $3.92 EPS we see in '07, below historical P/Es to reflect likely further credit deterioration."
You May Also Be Interested In
- UPDATE: UBS Downgrades Wisconsin Energy (WEC) to Neutral; Taking Some Off The Table
- Tudor Pickering Downgrades Petrobras (PBR) to Accumulate
- Barclays Cuts Estimates and Price Target on ADP (ADP); Mixed Data From Investor Day
Create E-mail Alert Related Categories
DowngradesSign 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!
