Astoria Financial (AF) PT Bumped to $17 at Piper Jaffray

Piper Jaffray analyst Matthew Kelley reiterated an Overweight rating and raised his price target on Astoria Financial (NYSE: AF) to $17.00 (from $15.00) after updating their terminal value analysis.

Kelley commented, "We increased our price target to $17 (from $15) after updating our terminal value analysis. In our view, the potential for a sale over the next 12-18 mos. has increased following the 13D filing by Basswood Capital on August 3rd. We now see potential deal value of $17 - $19 per share (up from $16-$18 p/s) and our analysis now ascribes value to real estate assets and a slightly lower credit mark (2.5%). Including 40% cost saves and a restructuring of high cost borrowings, we see pro forma earnings power of upwards of $1.40 p/s. Our current 2015-2016 estimates are unchanged."

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

Shares of Astoria Financial closed at $16.08 yesterday.

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