FBR Capital Reiterates an 'Outperform' on F.N.B. Corporation (FNB); Fully Priced Acquisition Propels FNB to #3 Market Share in Pittsburgh
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Price: $19.15 -1.29%
Rating Summary:
12 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
Rating Summary:
12 Buy, 3 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 13 | New: 26
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FBR Capital reiterates an 'Outperform' on F.N.B. Corporation (NYSE: FNB), PT $11.
FBR analyst says, "While we acknowledge the scarcity value in Parkvale, we consider the purchase expensive at 2x tangible book and a 100% takeout premium, even for a competitive sales process. Still, we like that the acquisition is relatively neutral to tangible book, and what modest dilution there is will be earned back in year 1 with incremental earnings. The transaction is relatively neutral to capital ratios, and the deal does give FNB more meaningful market share in a good MSA. Further, on its call management stated that despite planned runoff of certain acquired portfolios, the acquisition actually has modestly positive implications for growth. We reduce our 2011 operating EPS estimate to $0.71 (from $0.74) to reflect the May capital raise, and reiterate our 2012 estimate of $0.90. In 2012, dilution from the recent capital raise is offset by accretion from Parkvale."
For more ratings news on F.N.B. Corporation click here and for the rating history of F.N.B. Corporation click here.
Shares of F.N.B. Corporation closed at $10.32 yesterday.
FBR analyst says, "While we acknowledge the scarcity value in Parkvale, we consider the purchase expensive at 2x tangible book and a 100% takeout premium, even for a competitive sales process. Still, we like that the acquisition is relatively neutral to tangible book, and what modest dilution there is will be earned back in year 1 with incremental earnings. The transaction is relatively neutral to capital ratios, and the deal does give FNB more meaningful market share in a good MSA. Further, on its call management stated that despite planned runoff of certain acquired portfolios, the acquisition actually has modestly positive implications for growth. We reduce our 2011 operating EPS estimate to $0.71 (from $0.74) to reflect the May capital raise, and reiterate our 2012 estimate of $0.90. In 2012, dilution from the recent capital raise is offset by accretion from Parkvale."
For more ratings news on F.N.B. Corporation click here and for the rating history of F.N.B. Corporation click here.
Shares of F.N.B. Corporation closed at $10.32 yesterday.
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