DA Davidson Starts Cathay General Bancorp (CATY) at Neutral, Taking The Right Steps In The Right Direction
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Price: $64.49 -0.68%
Rating Summary:
6 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 22 | New: 20
Rating Summary:
6 Buy, 9 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 22 | New: 20
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DA Davidson initiates coverage on shares of Cathay General Bancorp (NASDAQ: CATY) with a Neutral rating and $18 price target.
With CATY posting losses for its 2009 and 2010 fiscal years the firm believes that 2011 will be the turnaround year. The positive year will be due to lower credit costs and top line revenue growth. The company's 2011 profitability ratios will be modest, but DA Davidson is estimating a ROA and ROE of 0.65% and 4.8%.
The company is really taking the right steps to turnaround its balance sheet by improving its asset quality and by reducing its loan concentrations over the past few years, reducing CRE concentrations from 534% of capital in 2007 to 285% in 2010.
The firm reports that CATY continues to focus on meeting the requirements of the two MOUs that it is under with the San Francisco Fed and the FDIC. The company anticipates that the MOUs will be lifted in late 2011/early 2012.
DA Davidson is issuing its 2011 and 2012 EPS estimates at $0.89 and $1.32.
For more ratings news on Cathay General Bancorp click here and for the rating history of Cathay General Bancorp click here.
Shares of Cathay General Bancorp closed at $17.08 yesterday.
With CATY posting losses for its 2009 and 2010 fiscal years the firm believes that 2011 will be the turnaround year. The positive year will be due to lower credit costs and top line revenue growth. The company's 2011 profitability ratios will be modest, but DA Davidson is estimating a ROA and ROE of 0.65% and 4.8%.
The company is really taking the right steps to turnaround its balance sheet by improving its asset quality and by reducing its loan concentrations over the past few years, reducing CRE concentrations from 534% of capital in 2007 to 285% in 2010.
The firm reports that CATY continues to focus on meeting the requirements of the two MOUs that it is under with the San Francisco Fed and the FDIC. The company anticipates that the MOUs will be lifted in late 2011/early 2012.
DA Davidson is issuing its 2011 and 2012 EPS estimates at $0.89 and $1.32.
For more ratings news on Cathay General Bancorp click here and for the rating history of Cathay General Bancorp click here.
Shares of Cathay General Bancorp closed at $17.08 yesterday.
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