DA Davidson Upgrades PremierWest Bancorp (PRWT) to Neutral; Lessening Failure Risk & Recent Share Decline
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Price: $1.99 --0%
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 16 | New: 9
Rating Summary:
0 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 16 | New: 9
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DA Davidson upgraded PremierWest Bancorp (NASDAQ: PRWT) from Underperform to Neutral. PT lowered from $2.00 to $1.45.
DA analyst says, "Year-to-date, PRWT shares have fallen 60%, likely associated with concerns over additional credit losses, regulatory hurdles and/or capital inadequacy. As of 3/31/11, the bank held roughly 10% NPAs to total assets, is operating under both a Consent Order and a Written Agreement and needs a capital raise of approximately $20 million ($19 million, net of underwriting costs) to boost tier 1 capital to 10%. With the YTD pullback in share price, we believe the shares have approached fair value given the potential for the bank to improve credit quality, successfully raise new capital or receive a takeout offer from an acquiring franchise."
"We are lowering our price target from $2.00 to $1.45, which equals roughly the midpoint of a probability-adjusted TBV following a capital raise ($1.25, or 50% of post deal TBV) and our estimated potential takeout price ($1.61)."
For more ratings news on PremierWest Bancorp click here and for the rating history of PremierWest Bancorp click here.
Shares of PremierWest Bancorp closed at $1.31 yesterday.
DA analyst says, "Year-to-date, PRWT shares have fallen 60%, likely associated with concerns over additional credit losses, regulatory hurdles and/or capital inadequacy. As of 3/31/11, the bank held roughly 10% NPAs to total assets, is operating under both a Consent Order and a Written Agreement and needs a capital raise of approximately $20 million ($19 million, net of underwriting costs) to boost tier 1 capital to 10%. With the YTD pullback in share price, we believe the shares have approached fair value given the potential for the bank to improve credit quality, successfully raise new capital or receive a takeout offer from an acquiring franchise."
"We are lowering our price target from $2.00 to $1.45, which equals roughly the midpoint of a probability-adjusted TBV following a capital raise ($1.25, or 50% of post deal TBV) and our estimated potential takeout price ($1.61)."
For more ratings news on PremierWest Bancorp click here and for the rating history of PremierWest Bancorp click here.
Shares of PremierWest Bancorp closed at $1.31 yesterday.
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