DA Davidson Downgrades Washington Federal (WFSL) to Neutral; Improvement Evident, But Getting Impatient With Subdued Profitability
Tweet
Share
E-mailGet Alerts WFSL Hot Sheet
Price: $16.01 +0.25%
Rating Summary:
0 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
DA Davidson downgraded Washington Federal (NASDAQ: WFSL) from Buy to Neutral. PT cut from $21 to $17
DA analyst says, "A high single digit ROE, and therefore a P/TBV multiple north of 1.40x TBV, does not seem attainable without organic loan growth, a meaningful acquisition, or a sharp drop in credit costs. In addition, with our out year EPS projection not much above $1 per share, we have difficulty justifying a P/E multiple beyond 20x. Therefore, we are lowering our price target to $17...Due to the limited upside to our revised price target we are lowering our rating...We are lowering our fiscal 2011 and 2012 EPS projections from $0.94 and $1.25 to $0.87 and $1.10, respectively. Increased provision assumptions and a lower NIM forecast largely drive the estimate changes."
For more ratings news on Washington Federal click here and for the rating history of Washington Federal click here.
Shares of Washington Federal closed at $16.59 yesterday.
DA analyst says, "A high single digit ROE, and therefore a P/TBV multiple north of 1.40x TBV, does not seem attainable without organic loan growth, a meaningful acquisition, or a sharp drop in credit costs. In addition, with our out year EPS projection not much above $1 per share, we have difficulty justifying a P/E multiple beyond 20x. Therefore, we are lowering our price target to $17...Due to the limited upside to our revised price target we are lowering our rating...We are lowering our fiscal 2011 and 2012 EPS projections from $0.94 and $1.25 to $0.87 and $1.10, respectively. Increased provision assumptions and a lower NIM forecast largely drive the estimate changes."
For more ratings news on Washington Federal click here and for the rating history of Washington Federal click here.
Shares of Washington Federal closed at $16.59 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- DA Davidson Downgrades Blaize Inc. (BZAI) to Neutral
- Nomura/Instinet Downgrades Korea Electric Power Corp. (015760:KS) (KEP) to Neutral
- JPMorgan Downgrades KinderCare Learning Companies (KLC) to Underweight
Create E-mail Alert Related Categories
DowngradesRelated Entities
D.A. DavidsonSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
