FBR Capital Reiterates an 'Outperform' on First Niagara Financial (FNFG); Continued Organic Loan Growth Characterizes Q1

FBR Capital reiterates an 'Outperform' on First Niagara Financial (NASDAQ: FNFG), PT $16.

FBR analyst says, "We reiterate our rating and price target on First Niagara, equal to 12.8x our 2012 operating EPS estimate, and 2.0x tangible book, reasonable in our view given our expectation for a 16% ROTCE in 2012. We reiterate our 2011 and 2012 operating EPS estimates of $1.05 and $1.25, respectively. First Niagara's first quarter results were characterized by strong NIM expansion, healthy commercial loan growth, core deposit growth, and a double-digit ROTCE. Management is focused on organic growth in lending, deposits, and fee income, and it expects improving efficiency despite investments for growth. Our rating is based on FNFG’s organic growth prospects, valuation, dividend yield, and low-cost deposit base. The shares' discounted valuation reflects both integration risk and investor fear that FNFG will announce an expensive acquisition."

For more ratings news on First Niagara Financial click here and for the rating history of First Niagara Financial click here.

Shares of First Niagara Financial closed at $13.89 yesterday.

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