FBR Capital Maintains a 'Market Perform' on People's United Financial (PBCT); Takeaways from Meeting with Management

FBR Capital maintains a 'Market Perform' on Peoples United Financial (NASDAQ: PBCT), PT $14.

FBR analyst says, "We reiterate our rating and price target, which is equal to
1.6x pro forma tangible book value of $8.68 and 14.7x our 2012 EPS estimate
following our investor day with People's United Financial's CEO Jack Barnes and CFO Kirk Walters at its Bridgeport, Connecticut headquarters. Takeaways from the meeting were (1) People's focus on operating efficiency; (2) capital deployment through organic growth, acquisitions, buybacks, and dividends; and (3) NIM outlook and affect of purchase accounting and accretable yield. Management is targeting significantly better efficiency than we model, which could result in significant benefits for PBCT's earnings and valuation. The body of our note examines various sensitivity analyses regarding cost reductions and capital deployment. We reduce our 2011 operating EPS estimate to $0.73 (from $0.75) to reflect slower buyback activity following the close of Danvers, but reiterate our 2012 estimate of $0.95."

For more ratings news on Peoples United Financial click here and for the rating history of Peoples United Financial click here.

Shares of Peoples United Financial closed at $12.99 yesterday.

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