FBR Capital Reiterates an 'Outperform' on Capitol Federal Financial (CFFN); Capital Management Still on the Horizon

FBR Capital reiterates an 'Outperform' on Capitol Federal Financial (NASDAQ: CFFN), PT $13.

FBR analyst says, "We reiterate our rating and price target on Capitol Federal shares following F2Q11 (March) headline earnings that were in line with consensus and FBR's estimate despite the weaker-than-expected core trends with continued margin pressure and a drag from loan modifications. We continue to believe CFFN shares are not driven by earnings but by the prospect of aggressive capital management once the one-year period following its second-step conversion has passed. Given the current share price and the prospect of an attractive dividend yield, coupled with share buybacks, we continue to believe CFFN shares represent an attractive investment opportunity. In terms of earnings, CFFN does not generate strong earnings power, especially given its excess liquidity and the current lowyield environment."

For more ratings news on Capitol Federal Financial click here and for the rating history of Capitol Federal Financial click here.

Shares of Capitol Federal Financial closed at $11.82 yesterday.

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