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Hovde downgrades Yadkin Financial, BankUnited

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Hovde downgrades Yadkin Financial, BankUnited

Downgrades

Hovde Group analyst Kevin Fitzsimmons downgraded to "marketperform" from "outperform," after the company's acquisition by

The analyst also lowered the price target to $27.35 from $28.00,solely to align it with the announced deal terms. In addition, he increased his2016 EPS estimate to $1.66 from $1.63, as the company's second-quarter earningsexceeded the estimate, but maintained his 2017 EPS estimate at $1.91.

"We suspect that investors are not very surprised that [Yadkin]is opting to sell – but perhaps a bit surprised by the identity of the buyer,"he wrote. F.N.B. Corp. announced its agreement to acquire Yadkin Financial Corp.in a $1.4 billion all-stock transaction, today before its earnings conference call.


Raymond James analyst Michael Rose downgraded two Texas-basedbanks.

Rose downgraded Dallas-based Texas Capital Bancshares Inc. to "outperform" from"strong buy," but raised his 12-month price target to $54 from $52.

The analyst lowered his 2016 EPS estimate to $3.00 from $3.10,but maintained his 2017 EPS estimate at $3.60.

Rose mainly downgraded the stock because of its recent outperformance.The company shares closed at $50.18 on July 20, which the analyst believes doesnot leave much upside to his 12-month price target.

However, he is still optimistic about the company's prospectsconsidering forecast for higher oil prices through 2018 and expected strong coreheld for investment loan growth as the company keeps hiring relationship managers.In addition, the analyst is also positive about the continuous momentum in the company'smortgage warehouse and recently launched MCA business.


Rose lowered his rating for Plano, Texas-based to "outperform"from "strong buy," but raised his price target to $32 from $31.

He also raised his 2016 and 2017 EPS estimates to $1.97 and $2.10,from $1.87 and $2.05, respectively.

The analyst noted that the company's second-quarter exceeded his expectationsas well as Street estimates. He mainly downgraded the stock after strong outperformancein company shares year-to-date, which closed at $28.70 on July 20. However, he isstill optimistic about expected double-digit growth in the company's core held forinvestment loans and strong contribution from its mortgage warehouse. In addition,he expects the company to generate improved operating efficiency and double-digitEPS growth in 2016 and 2017.


Hovde Group analyst Joseph Fenech downgraded Miami Lakes, Fla.-basedBankUnited Inc. to "marketperform" from "outperform" and also lowered the price target to $30from $33.

The analyst also reduced his 2016 and 2017 EPS estimates to $2.08and $2.39 from $2.18 and $2.55, respectively. He also introduced his 2018 EPS estimateof $2.75.

Following the earningsrelease, the company Chairman, President and CEO John Kanas that the company might see lowerloan growth than it has seen in recent years, as they plan to be more selectivewith their lending practices.

"We thought 2Q results were relatively solid, and we wentinto the conference call (which began pre-market open) thinking that the stock wouldlikely be up at the open," the analyst wrote in his recent report, as he notedhis surprise about the announcement. As the company expects to fall short of itspreviously issued guidance regarding loan growth of $4 billion to $5 billion for2016 and is expected to report lower net interest margin, the analyst lowered hisrating and estimates for the company.


Sandler O'Neill & Partners LP analyst Stephen Scouten alsodowngraded BankUnited to "hold" from "buy" and reduced his pricetarget to $33 from $34.

The analyst lowered his 2016 and 2017 EPS estimates to $2.06and $2.35, from $2.16 and $2.52, respectively.

"Loan growth returns but management's lower guidance pourswater on any optimism," the analyst noted. He highlighted that the company'sloan growth rebounded to approximately $1.2 billion in the second quarter. However,as the company's management expects slower loan growth in the second half, it willaffect the company's projected earnings.


FIG Partners LLC analyst Timothy Coffey downgraded to "market-perform"from "outperform" and increased his price target to $27.00 from $25.00.

The analyst also reduced his 2016 EPS estimate to $1.56 from$1.59 and increased his 2017 EPS projection to $1.98 from $1.95.

He noted that downgrading the company stock is a "valuationcall." The company's share price increased nearly 20% between its first-quarterand second-quarter earnings results, while the S&P Bank Index retreated nearly3% over the same time span.

"We believe [Pacific Premier Bancorp] could face some newchallenges on a fundamental basis in [the second half of 2016]. As successful asthe integration of Security First Bank has been year-to-date, fundamental performancesuggests the company did not do enough to prevent competitors from poaching thecompany's clients," he wrote in his recent research note. "We expect thecompany to be more aggressive in retaining clients (when appropriate) and goingafter more business with higher risk-adjusted returns," he added.