Compass Point Initiates Coverage on Meridian Interstate Bancorp (EBSB)
Equities research analysts at Compass Point assumed coverage on shares of Meridian Interstate Bancorp (NASDAQ:EBSB) in a research note issued to investors on Tuesday, AnalystRatings.NET reports. The firm set a “neutral” rating and a $26.00 price target on the stock. Compass Point’s price objective would indicate a potential upside of 4.67% from the stock’s previous close.
The analysts wrote, “We initiate with a Neutral rating and a 12-month price target of $26, representing 1.15x market-adjusted fully-converted TB (FCTB). While we believe this will be a must-own name, we do not want to get in the way of exchange ratio math (we are assuming a Mid-Max closing, but note there is risk in the range). “We have highlighted the current market value and potential price target at each level in the range on page 12, lines 26-27; our current price target will be exchange ratio adjusted following the offering. For those investors who can’t stomach the rollercoaster of exchange ratio risk (exchange ratio range: 1.7580-2.7353; or $18 to $27 in value at par with exchange ratio), we suggest waiting for the closing level announcement, and tee-it-up for day-1 aftermarket purchasing. “EBSB offers investors a unique opportunity to invest in the 3rd largest publicly-traded MA-based bank serving the greater Boston MSA; EBSB is a well-capitalized, 166 year old, clean, $3 billion-asset sized bank (pro forma), trading close to tangible book. We base our valuation on a blended five-pronged approach: 1) Franchise; 2) Peers; 3) Credit; 4) Capital/capital management tools; and 5) Management expertise and ownership.”
Several other analysts have also recently commented on the stock. Analysts at Zacks downgraded shares of Meridian Interstate Bancorp from an “outperform” rating to a “neutral” rating in a research note on Monday, April 7th. They now have a $29.10 price target on the stock. Separately, analysts at Keefe, Bruyette & Woods raised their price target on shares of Meridian Interstate Bancorp from $23.00 to $28.00 in a research note on Tuesday, March 11th.
Shares of Meridian Interstate Bancorp (NASDAQ:EBSB) traded down 0.76% during mid-day trading on Tuesday, hitting $24.65. 3,516 shares of the company’s stock traded hands. Meridian Interstate Bancorp has a 1-year low of $17.50 and a 1-year high of $28.22. The stock has a 50-day moving average of $25.86 and a 200-day moving average of $23.80. The company has a market cap of $530.9 million and a price-to-earnings ratio of 35.49.
Meridian Interstate Bancorp (NASDAQ:EBSB) last announced its earnings results on Tuesday, April 22nd. The company reported $0.17 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.11 by $0.06. On average, analysts predict that Meridian Interstate Bancorp will post $0.50 earnings per share for the current fiscal year.
Meridian Interstate Bancorp, Inc is a mid-tier stock holding company of East Boston Savings Bank (NASDAQ:EBSB).
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