DA Davidson Starts First California Financial (FCAL) at Neutral, $3.50 Price Target
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Price: $49.00 +0.06%
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
Rating Summary:
1 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 9
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DA Davidson initiates coverage on shares of First California Financial (NASDAQ: FCAL) with a Neutral rating and $3.50 price target.
The firm reports that FCAL is a low risk stock, but notes that the growth outlook for the company is minimal. DA Davidson currently forecasts ROE for 2012 of 4.4 percent.
Roughly 88 percent of the company's revenue is generated from a spread income. The firm believes that the fee income contribution will increase given various initiatives.
DA Davidson estimates EPS of $0.71 and $0.30 for 2011 and 2012. The firms core EPS estimates for the two years are ($0.07) and $0.30.
An analyst at DA Davidson comments, "In our opinion, FCAL maintains a disciplined underwriting culture that focuses on cash flow underwriting and helped the company avoid sizable net charge-offs through the cycle. With NPAs at 3.42% of loans+REO and expected to decline via ongoing asset dispositions, we think the remaining loss content in the portfolio is rather modest at this point in the cycle."
For more ratings news on First California Financial click here and for the rating history of First California Financial click here.
Shares of First California Financial closed at $3.20 yesterday.
The firm reports that FCAL is a low risk stock, but notes that the growth outlook for the company is minimal. DA Davidson currently forecasts ROE for 2012 of 4.4 percent.
Roughly 88 percent of the company's revenue is generated from a spread income. The firm believes that the fee income contribution will increase given various initiatives.
DA Davidson estimates EPS of $0.71 and $0.30 for 2011 and 2012. The firms core EPS estimates for the two years are ($0.07) and $0.30.
An analyst at DA Davidson comments, "In our opinion, FCAL maintains a disciplined underwriting culture that focuses on cash flow underwriting and helped the company avoid sizable net charge-offs through the cycle. With NPAs at 3.42% of loans+REO and expected to decline via ongoing asset dispositions, we think the remaining loss content in the portfolio is rather modest at this point in the cycle."
For more ratings news on First California Financial click here and for the rating history of First California Financial click here.
Shares of First California Financial closed at $3.20 yesterday.
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