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Springleaf Holdings (LEAF) Expects to Close OneMain Acquisition by YE; FBR Capital Reiterates Outperform

November 10, 2015 9:13 AM

FBR Capital reiterated an Outperform rating and $65.00 price target on Springleaf Holdings (NYSE: LEAF) following the company's 3Q earnings report. LEAF grew 3Q15 loan originations 14% YOY and loan balances 30%. LEAF also confirmed that it expects to close its acquisition of OneMain by year-end.

Analyst Bob Ramsey commented, "We reiterate our Outperform rating on LEAF and our $65 price target, equal to 9.3x our 2017 EPS estimate of $6.50. LEAF grew 3Q15 loan originations 14% YOY and loan balances 30%. LEAF also confirmed that it expects to close its acquisition of OneMain by year-end. We view this as a positive catalyst, as LEAF is very inexpensive based on the combined earnings power of the company. Largely to reflect the yearend close of OneMain, we adjust our 4Q15 operating EPS estimate to $0.45 (from $1.12) and reiterate our 2016 EPS estimate of $5.75 and our 2017 estimate of $6.50."

For an analyst ratings summary and ratings history on Springleaf Holdings click here. For more ratings news on Springleaf Holdings click here.

Shares of Springleaf Holdings closed at $48.56 yesterday.

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Analyst Comments Mergers and Acquisitions

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