FBR Capital Maintains a 'Market Perform' on Boston Private Financial (BPFH); Credit Shows Signs of Stabilization, but Valuation Is Full

FBR Capital maintains a 'Market Perform' on Boston Private Financial (NASDAQ: BPFH), PT increased from $6 to $6.50.

FBR analyst says, "Credit trends seem to be stabilizing faster than we
expected, and we are glad to hear that the inflow of new problem loans has dropped 65% sequentially. On the other hand, we could not help but notice a decline in loans and lower pre-provision earnings power, and we expect that the shift in loan mix to a greater proportion of residential mortgages will weigh on asset yields. To reflect lower credit costs, we raise our 2011 estimate to $0.09 (from $0.05) and reiterate our 2012 estimate of $0.40. BPFH trades at a premium due to its attractive revenue mix and ultimate takeout potential, but we expect that the current valuation will limit near-term upside."

For more ratings news on Boston Private Financial click here and for the rating history of Boston Private Financial click here.

Shares of Boston Private Financial closed at $6.87 yesterday.

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