Davenport Initiates Coverage on Old Point Financial (OPOF) with a Buy

December 12, 2008 9:34 AM EST

Davenport initiates coverage on Old Point Financial Corp. (NASDAQ: OPOF) with a Buy. Price target $22.

Davenport analyst says, "While numerous headwinds still exist for both Old Point and the banking sector, we feel that the current valuation levels offer an attractive entry point into the shares. The combination of a below average risk loan portfolio, excellent returns and a strong capital position should enable the company to survive the current economic storm and emerge in a position to capitalize on the disarray of the sector...We believe that OPOF is currently positioned to handle the weak economy well. Although this is not a favorable banking environment, the uncertainty has created long-term attractive valuation levels for those banks that emerge relatively unscathed. We also believe that OPOF’s attractiveness as a potential takeover target should aid future valuation levels. In addition, OPOF pays an attractive dividend, which currently yields 4.1%."

Old Point Financial Corporation is a holding company that conducts substantially all of its operations through two subsidiaries: The Old Point National Bank of Phoebus (the Bank) and Old Point Trust and Financial Services, N.A. (Trust).

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