DA Davidson Starts Wilshire Bancorp (WIBC) at Neutral, Making The Turn
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Price: $10.74 --0%
Rating Summary:
3 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 2 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson initiates coverage on shares of Wilshire Bancorp (NASDAQ: WIBC) with a Neutral rating and a price target of $5.50.
The company has been restructuring itself for the past several quarters which has resulted in a much more attractive balance sheet. The firm reports that it is not clear if the company is through all of its asset quality issues, regulatory actions appear likely, and WIBC is still expected to raise a "yet to be" determined amount of common equity over the coming quarters to improve its capital position.
WIBC sold $130 million in loans in 2010 through a mix of bulk sales and in individual loans. The sales were made with an average loss of a ~30%.
The firm believes that the company's new CEO Jae Whan Yoo will be a good fit for the company and should help with the turnaround of the company as he has 35 years of banking experience.
With the Asian-American population growing over 43% in the last 10 years and it looking to continue to grow at a rapid pace, DA Davidson expects that WIBC will be able to take advantage of this growing population. Korean-Americans are expected to fuel much of this expansion in the major population centers like CA, NY, NJ, and TX. The company is already involved in all of these states.
DA Davidson is releasing its 2011 and 2012 EPS estimates at $0.44 and $0.71.
For more ratings news on Wilshire Bancorp click here and for the rating history of Wilshire Bancorp click here.
Shares of Wilshire Bancorp closed at $4.94 yesterday.
The company has been restructuring itself for the past several quarters which has resulted in a much more attractive balance sheet. The firm reports that it is not clear if the company is through all of its asset quality issues, regulatory actions appear likely, and WIBC is still expected to raise a "yet to be" determined amount of common equity over the coming quarters to improve its capital position.
WIBC sold $130 million in loans in 2010 through a mix of bulk sales and in individual loans. The sales were made with an average loss of a ~30%.
The firm believes that the company's new CEO Jae Whan Yoo will be a good fit for the company and should help with the turnaround of the company as he has 35 years of banking experience.
With the Asian-American population growing over 43% in the last 10 years and it looking to continue to grow at a rapid pace, DA Davidson expects that WIBC will be able to take advantage of this growing population. Korean-Americans are expected to fuel much of this expansion in the major population centers like CA, NY, NJ, and TX. The company is already involved in all of these states.
DA Davidson is releasing its 2011 and 2012 EPS estimates at $0.44 and $0.71.
For more ratings news on Wilshire Bancorp click here and for the rating history of Wilshire Bancorp click here.
Shares of Wilshire Bancorp closed at $4.94 yesterday.
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