Compass Point Starts Yadkin Valley Financial (YAVY) Attractive Franchise...Possible Takeover Target

July 12, 2012 7:19 AM EDT Send to a Friend
Get Alerts YAVY Hot Sheet
Price: $4.25 --0%

Rating Summary:
    2 Buy, 3 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 15 | Down: 28 | New: 20
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Compass Point initiates coverage on Yadkin Valley Financial (NASDAQ: YAVY) with a Neutral. PT $3.20.

Analyst, Mike Turner, said, "The Elkin, NC based bank, with $1.9B in assets, has an attractive franchise due to their footprint in the high growth markets of Charlotte and the Research Triangle. Further, the company is backed by a conservative management team that was revamped in 2009...That said, we estimate the company will likely need to raise common equity in order to repay their $49MM in TARP, and sluggish loan growth and the low interest rate environment will act as headwinds to revenue growth...We initiate with FY12 and FY13 EPS estimates of $0.36 and $0.28."

Turner thinks that YAVY could make a good acquisition candidate, citing the N. Carolina footprint and 50% core deposit funding.

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

Shares of Yadkin Valley Financial closed at $2.62 yesterday.


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