Barclays Maintains an 'Overweight' on Capital Source (CSE); 3Q11 Recap: Buybacks Accelerate

Barclays maintains an 'Overweight' on Capital Source (NYSE: CSE) price target of $8.00.

Barclays analyst says, "CSE reported a $0.26 loss in 3Q compared to our $(0.17) estimate. Excluding debt retirement expense, EPS was $0.11, above our $0.05 estimate, though taxes were the primary differential vs. our numbers. Pre-tax income was mostly in line at a $92M loss vs. our estimate for an $89M loss, except for noise from investment gai ns and higher than expected provision expense, which was a negative surprise. Overall, we view the results as positive, highlighted by better-than-expected loan growth, higher share buybacks, and lower funding costs. As CSE repays debt at the parent company and repurchases stock with excess cash, we estimate the company should be able to approach a core EPS run-rate of $0.70 in late 2012, which should grow further in 2013."

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 $6.70 yesterday.

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