FBR Capital Maintains an 'Outperform/Top Pick' on National Penn Bancshares (NPBC); Profitability Is Improving as Credit Costs Normalize
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Price: $10.72 --0%
Rating Summary:
1 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform/Top Pick' on National Penn Bancshares (NASDAQ: NPBC), PT $10.
FBR analyst says, "National Penn is strongly capitalized with a pro forma 9.9% TCE ratio, and a very large allowance. Despite its lack of meaningful leverage, the company generated a 9% ROTCE in 1Q11, which we expect to grow to 12% by the end of 2012. Given improving credit metrics and profitability in addition to its robust capital and allowance we are optimistic that National Penn will be able to get its MOU lifted. Next, the company should be able to focus on uses for its excess capital, with growth a very high priority, followed by accretive acquisitions and a more meaningful dividend. Shares trade at a discount to those of peers, which we attribute largely to a shrinking balance sheet and the MOU, but given our expectation for improvement on those fronts, we expect valuation to improve and shares to outperform peers. National Penn is an FBR Top Pick."
For more ratings news on National Penn Bancshares click here and for the rating history of National Penn Bancshares click here.
Shares of National Penn Bancshares closed at $7.87 yesterday.
FBR analyst says, "National Penn is strongly capitalized with a pro forma 9.9% TCE ratio, and a very large allowance. Despite its lack of meaningful leverage, the company generated a 9% ROTCE in 1Q11, which we expect to grow to 12% by the end of 2012. Given improving credit metrics and profitability in addition to its robust capital and allowance we are optimistic that National Penn will be able to get its MOU lifted. Next, the company should be able to focus on uses for its excess capital, with growth a very high priority, followed by accretive acquisitions and a more meaningful dividend. Shares trade at a discount to those of peers, which we attribute largely to a shrinking balance sheet and the MOU, but given our expectation for improvement on those fronts, we expect valuation to improve and shares to outperform peers. National Penn is an FBR Top Pick."
For more ratings news on National Penn Bancshares click here and for the rating history of National Penn Bancshares click here.
Shares of National Penn Bancshares closed at $7.87 yesterday.
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