FBR Capital Maintains a 'Market Perform' on PacWest Bancorp (PACW); 1Q11 Recap: Solid EPS Beat on Lower Costs; Loan Growth Elusive
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Price: $7.54 --0%
Rating Summary:
8 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
Rating Summary:
8 Buy, 9 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
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FBR Capital maintains a 'Market Perform' on PacWest Bancorp (NASDAQ: PACW), PT increased to $22.
FBR analyst says, "Our neutral rating reflects our view that shares may be fairly valued ahead of revenue headwinds from anemic loan demand for the industry as a whole, loan paydowns, and PACW's liabilitysensitive balance sheet, offset by lower credit and operating costs. A low-growth environment coupled with intense competitive pressures from larger institutions will likely constrain net interest income growth prospects (2.3% growth modeled in FY12). On the other hand, credit costs appear to be normalizing largely driven by management's prudent asset disposition strategy. In our view, a 3.2% reserve ratio (vs. 2.5% of NPLs) will likely mitigate any need for provisioning in excess of losses, especially in light of a leveling off in new NPL formations and a declining loan book."
For more ratings news on PacWest Bancorp click here and for the rating history of PacWest Bancorp click here.
Shares of PacWest Bancorp closed at $21.72 yesterday.
FBR analyst says, "Our neutral rating reflects our view that shares may be fairly valued ahead of revenue headwinds from anemic loan demand for the industry as a whole, loan paydowns, and PACW's liabilitysensitive balance sheet, offset by lower credit and operating costs. A low-growth environment coupled with intense competitive pressures from larger institutions will likely constrain net interest income growth prospects (2.3% growth modeled in FY12). On the other hand, credit costs appear to be normalizing largely driven by management's prudent asset disposition strategy. In our view, a 3.2% reserve ratio (vs. 2.5% of NPLs) will likely mitigate any need for provisioning in excess of losses, especially in light of a leveling off in new NPL formations and a declining loan book."
For more ratings news on PacWest Bancorp click here and for the rating history of PacWest Bancorp click here.
Shares of PacWest Bancorp closed at $21.72 yesterday.
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