UPDATE: UBS Upgrades TCF Financial (TCF) to Buy

March 10, 2020 4:30 AM EDT
Get Alerts TCF Hot Sheet
Price: $45.18 --0%

Rating Summary:
    8 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 8 | New: 9
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(Updated - March 10, 2020 4:45 AM EDT)

(updating comment, correcting PT)

UBS analyst Brock Vandervliet upgraded TCF Financial (NASDAQ: TCF) from Neutral to Buy with a price target of $37.00 (from $46.00.)

The analyst comments "The TCF / CHFC combination (closed August 2019) creates a premier Midwest regional bank able to demonstrate meaningful near term cost saves (13% of combined expense base by Q4) and revenue synergies (loan growth & fee growth) over time. The combination makes TCF a very strong “self-help” story at a time of tremendous macro turmoil. The fundamental path is now clear for expense reduction, top-line growth, and buyback to generate mid-teens average EPS growth 2021-2023. Also, our buyback assumption (10% through 2022) could prove conservative. We reduce our 2020/21 EPS forecast to $3.81/$4.34, inclusive of the 50 bp emergency FF cut, our expectation of 50 bps in further cuts and incrementally lower loan growth. While our 2021 EPS forecast is 5% below consensus that is an artifact of the macro turmoil. Consensus should drift lower. TCF’s 2021 multiple of ~6x prices in a very high degree of uncertainty."

For an analyst ratings summary and ratings history on TCF Financial click here. For more ratings news on TCF Financial click here.

Shares of TCF Financial closed at $26.65 yesterday.


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