Barclays Reiterates an 'Overweight' on Capital Source (CSE); Expeditious Return of Capital Key to Unlocking Value
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Price: $15.50 --0%
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
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Barclays reiterates an 'Overweight' on Capital Source (NYSE: CSE) price target of $8.00.
Barclays analyst says, "Recent Pull Back Creates Interesting Opportunity: Since reporting 2Q11 earnings last Friday, CSE has underperformed the market, falling 14.1% in a week that saw the S&P 500 drop 7.2%, despite the fact that CSE's stock should benefit from two important positive catalysts that should come in the coming months irrespective of the strength of the economy: 1) significant return of capital (could eventually repurchase $1B+ of stock, or more than half its current market cap), and 2) paying down high-cost debt. With credit costs looking like they have stabilized and the shares now trading at only 0.85x current book and less than 0.7x our estimate of 4Q12 book, we see downside as limited and upside as substantial (44% to our current target)."
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 $5.55 yesterday.
Barclays analyst says, "Recent Pull Back Creates Interesting Opportunity: Since reporting 2Q11 earnings last Friday, CSE has underperformed the market, falling 14.1% in a week that saw the S&P 500 drop 7.2%, despite the fact that CSE's stock should benefit from two important positive catalysts that should come in the coming months irrespective of the strength of the economy: 1) significant return of capital (could eventually repurchase $1B+ of stock, or more than half its current market cap), and 2) paying down high-cost debt. With credit costs looking like they have stabilized and the shares now trading at only 0.85x current book and less than 0.7x our estimate of 4Q12 book, we see downside as limited and upside as substantial (44% to our current target)."
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 $5.55 yesterday.
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