Janney Montgomery Scott Upgrades Provident Financial Services (PFS) to Buy

November 4, 2009 8:43 AM EST

Janney Montgomery Scott upgrades Provident Financial Services (NYSE: PFS) from Neutral to Buy. Price target $12.

Janney analyst says, "Provident's stock price drop (17%) since its second half 2009 high of on August 12 provides defensive-minded investors with an opportunity to buy a conservatively-managed company at a reasonable price. The stock trades at 119% of tangible book value of $8.75, while its secure dividend yields approximately 4.4%. We are encouraged by the strong core deposit growth and improved loan mix, and therefore, raise our earnings estimates as margin improvement seems likely while credit costs remain under control...Provident is a sound defensive stock and is positioned to ride out the recession and thrive when economic conditions improve. As of September 30, 2009, the company was well-capitalized (8.1% tangible equity ratio) with an attractive funding base."

To see more analyst ratings on PFS Click Here.

Related Categories

Upgrades

Stocks Mentioned

Related Entities

• Janney Montgomery Scott
• Dividend

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?