Barclays Reiterates an 'Overweight' on Capital Source (CSE); 3Q11 Preview
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Price: $15.50 --0%
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays reiterates an 'Overweight' on Capital Source (NYSE: CSE) price target of $8.00.
Barclays analyst says, "When CSE reports 3Q11 results on October 27, we expect a GAAP loss of $0.17, or positive $0.05 excluding the impact of the senior secured note redemption. During the quarter, CSE continued to make significant progress in reducing parent company debt, which will reduce interest expense and also allow the company to accelerate share repurchases."
"We previously assumed that CSE would redeem its senior secured notes in 1Q12 and are raising our full-year 2012 EPS estimate to $0.50 to reflect lower interest expense and higher share buybacks. From 3Q11 to 4Q12, we model $1B of repurchases (50% of its market cap), which should be a catalyst for the stock over the next 1-2 years." (Lowers FY11 EPS estimate from $0.19 to -0.02 and FY12 from $0.40 to $0.50)
For more ratings news on Capital Source click here and for the rating history of Capital Source click here.
Shares of Capital Source closed at $6.28 yesterday.
Barclays analyst says, "When CSE reports 3Q11 results on October 27, we expect a GAAP loss of $0.17, or positive $0.05 excluding the impact of the senior secured note redemption. During the quarter, CSE continued to make significant progress in reducing parent company debt, which will reduce interest expense and also allow the company to accelerate share repurchases."
"We previously assumed that CSE would redeem its senior secured notes in 1Q12 and are raising our full-year 2012 EPS estimate to $0.50 to reflect lower interest expense and higher share buybacks. From 3Q11 to 4Q12, we model $1B of repurchases (50% of its market cap), which should be a catalyst for the stock over the next 1-2 years." (Lowers FY11 EPS estimate from $0.19 to -0.02 and FY12 from $0.40 to $0.50)
For more ratings news on Capital Source click here and for the rating history of Capital Source click here.
Shares of Capital Source closed at $6.28 yesterday.
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