Barclays Maintains an 'Equalweight' on Peoples United Financial (PBCT); 3Q11 EPS Preview: Expense Focused
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Price: $19.41 --0%
Rating Summary:
3 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on Peoples United Financial (NASDAQ: PBCT) price target of $14.00.
Barclays analyst says, "We expect PBCT to report 3Q11 EPS of $0.17 versus the $0.17 consensus. However, to reflect the recent decline at the long end of the yield curve which is likely to lead to net interest margin pressures, we also lowered our 2011 and 2012 EPS estimates to $0.65 (was $0.68) and $0.85 ($0.92), respectively."
"Following the completion of its acquisition of Danvers Bancorp (effective July 1), we believe People's United Financial has a significant opportunity to take share in Massachusetts (ranks No. 7 in both the Boston MSA and in Massachusetts) while also improving its position in Long Island (Smithtown acquisition closed in November) and Westchester, New York. We expect its near-term focus to remain on integration and expense reduction (55% efficiency ratio target in two years). Despite its strong longer-term prospects, we see some near-term headwinds for its net interest income (prolonged low rate environment and operation twist) and fee income (Durbin starts in 4Q; $0.04 annually before mitigation)."
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 $11.88 yesterday.
Barclays analyst says, "We expect PBCT to report 3Q11 EPS of $0.17 versus the $0.17 consensus. However, to reflect the recent decline at the long end of the yield curve which is likely to lead to net interest margin pressures, we also lowered our 2011 and 2012 EPS estimates to $0.65 (was $0.68) and $0.85 ($0.92), respectively."
"Following the completion of its acquisition of Danvers Bancorp (effective July 1), we believe People's United Financial has a significant opportunity to take share in Massachusetts (ranks No. 7 in both the Boston MSA and in Massachusetts) while also improving its position in Long Island (Smithtown acquisition closed in November) and Westchester, New York. We expect its near-term focus to remain on integration and expense reduction (55% efficiency ratio target in two years). Despite its strong longer-term prospects, we see some near-term headwinds for its net interest income (prolonged low rate environment and operation twist) and fee income (Durbin starts in 4Q; $0.04 annually before mitigation)."
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 $11.88 yesterday.
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