FBR Capital Reiterates an 'Outperform/Top Pick' on Capital Source (CSE); Bank Results Remain Strong Despite Q1 Miss
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Price: $15.50 --0%
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
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FBR Capital reiterates an 'Outperform/Top Pick' on Capital Source (NYSE: CSE), PT $9.
FBR analyst says, "While 1Q11 results were disappointing (the miss was primarily due to a higher tax rate and higher provision expense), our investment thesis remains unchanged—the financial drag of the holding company will ultimately disappear, leaving CapitalSource Bank as the primary earnings driver. The bank's results continue to be strong—strong loan originations, improving credit quality, and attractive NIM—which bodes well for future profitability and valuation. We are reducing our FY11 and FY12 EPS to $0.12 (from $0.40) and $0.25 (from $0.42), respectively. We view the 20% TCE ratio and $1B of unrestricted cash at the holding company as providing downside support."
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 $6.90 yesterday.
FBR analyst says, "While 1Q11 results were disappointing (the miss was primarily due to a higher tax rate and higher provision expense), our investment thesis remains unchanged—the financial drag of the holding company will ultimately disappear, leaving CapitalSource Bank as the primary earnings driver. The bank's results continue to be strong—strong loan originations, improving credit quality, and attractive NIM—which bodes well for future profitability and valuation. We are reducing our FY11 and FY12 EPS to $0.12 (from $0.40) and $0.25 (from $0.42), respectively. We view the 20% TCE ratio and $1B of unrestricted cash at the holding company as providing downside support."
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 $6.90 yesterday.
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