DA Davidson Starts CVB Financial (CVBF) at Neutral, ROE Estimated to be Higher Than Peers

DA Davidson initiates coverage on shares of CVB Financial (NASDAQ: CVBF) with a Neutral rating and $9 price target.

The firm notes that CVBF was one of the only banks who actually reported gains every quarter during the credit cycle. They believe that this reflects that company's disciplined underwriting philosophy and active credit management, which has been a key element of its business model.

Since the company announced the SEC subpoena back in the second quarter of 2010, shares have been down 21.1 percent, well below the Nasdaq Bank index which has only been down by 16.2 percent. Management stated that they are working closely with the SEC and are cooperating fully.

It is forecasted that the average projected ROE for its peer banks in 2011 and 2012 is 9.9 percent and 10.4 percent, below the estimates ROE for CVBF of 11.1 percent for both years.

DA Davidson released its 2011 and 2012 EPS estimates at $0.43 and $0.79.

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

Shares of CVB Financial closed at $8.22 yesterday.

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