BBCN Bancorp Rating Increased to Buy at DA Davidson (BBCN)
BBCN Bancorp (NASDAQ:BBCN) was upgraded by DA Davidson from a “neutral” rating to a “buy” rating in a research note issued on Wednesday, TheFlyOnTheWall.com reports. The firm currently has a $16.50 target price on the stock. DA Davidson’s price target points to a potential upside of 22.13% from the stock’s previous close.
The analysts wrote, “Loan production in the third quarter should remain strong with improved net loan growth, given a decline in the pace of loan prepayments compared to the elevated levels that impacted second quarter growth. Additionally, some loan closings that had been expected to occur in 2Q slipped into the third quarter. The impact of losing some producers to a competitor in the Korean-American bank space is not expected to have a material impact on loan balances. BBCN continues to maintain elevated capital levels following the 2011 capital raise that accompanied the closing of the Nara Bancorp and Center Financial merger. The company has increased its dividend payout to $0.075 per quarter and recently completed the acquisition of Fosters Bankshares. BBCN management believes there will be opportunities to further consolidate the Korean-American bank space, although the size of those opportunities will be modest. BBCN is also considering other business line expansion strategies including single-family residential, factoring, and leasing.”
BBCN Bancorp (NASDAQ:BBCN) traded down 0.07% during mid-day trading on Wednesday, hitting $13.50. 142,153 shares of the company’s stock traded hands. BBCN Bancorp has a 52-week low of $10.62 and a 52-week high of $16.00. The stock’s 50-day moving average is $14.23 and its 200-day moving average is $13.55. The company has a market cap of $1.069 billion and a P/E ratio of 13.25.
BBCN Bancorp (NASDAQ:BBCN) last posted its quarterly earnings results on Monday, July 22nd. The company reported $0.29 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.02. On average, analysts predict that BBCN Bancorp will post $1.09 earnings per share for the current fiscal year.
BBCN has been the subject of a number of other recent research reports. Analysts at BMO Capital Markets raised their price target on shares of BBCN Bancorp (NASDAQ:BBCN) from $15.00 to $16.00 in a research note to investors on Tuesday, August 13th. They now have a “market perform” rating on the stock. Separately, analysts at Keefe, Bruyette & Woods raised their price target on shares of BBCN Bancorp (NASDAQ:BBCN) from $14.00 to $15.00 in a research note to investors on Tuesday, July 30th. Finally, analysts at Sandler O’Neill raised their price target on shares of BBCN Bancorp (NASDAQ:BBCN) from $14.00 to $16.00 in a research note to investors on Wednesday, July 24th. They now have a “hold” rating on the stock.
Four investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. The stock presently has a consensus rating of “Buy” and a consensus target price of $16.20.
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