Bancorp Given Outperform Rating at Raymond James (TBBK)
Bancorp (NASDAQ:TBBK)‘s stock had its “outperform” rating restated by equities researchers at Raymond James in a research report issued on Thursday. They currently have a $14.00 price objective on the stock, down from their previous price objective of $18.00. Raymond James’ price objective suggests a potential upside of 21.32% from the stock’s previous close.
The analysts wrote, “We are reiterating our Outperform rating but lowering our target price to $14 from $18 on The Bancorp following its disclosure that its subsidiary bank has been placed under a consent order by the FDIC that restricts some aspects of its business, most notably its general purpose reloadable (GPR) prepaid card business. “Ultimately, we believe the financial impact will be very manageable as the prepaid business should remain a mid- to high-teen growth business despite the cap on growth in the GPR business, which we believe represented roughly one-third of the prepaid revenue in 2013. The stock sold off significantly on the news as we believe many investors (and analysts) threw in the towel on what has been a very frustrating year following 1Q14 results that were marred by significantly higher than expected credit costs with limited commentary from management around steps to address credit issues. “With the consent order essentially adding insult to injury for existing investors, we believe many decided that enough was enough and sold on the news. While we have been wrong on the stock this year, we believe the risk/reward proposition is attractive at current levels as pricing reflects a very draconian outlook on both the credit and revenue/expense management fronts, in our view.”
A number of other analysts have also recently weighed in on TBBK. Analysts at Sandler O’Neill downgraded shares of Bancorp from a “buy” rating to a “hold” rating in a research note on Wednesday. Separately, analysts at BTIG Research downgraded shares of Bancorp from a “buy” rating to a “neutral” rating in a research note on Wednesday. Finally, analysts at Sterne Agee downgraded shares of Bancorp from a “buy” rating to a “neutral” rating in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company. Bancorp presently has an average rating of “Hold” and a consensus target price of $14.40.
Bancorp (NASDAQ:TBBK) traded down 2.08% on Thursday, hitting $11.30. 662,423 shares of the company’s stock traded hands. Bancorp has a one year low of $9.88 and a one year high of $20.24. The stock has a 50-day moving average of $15.67 and a 200-day moving average of $17.76. The company has a market cap of $426.1 million and a price-to-earnings ratio of 24.61.
Bancorp (NASDAQ:TBBK) last announced its earnings results on Wednesday, April 23rd. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by $0.27. On average, analysts predict that Bancorp will post $0.61 earnings per share for the current fiscal year.
The Bancorp, Inc is a financial holding company with a wholly owned subsidiary, The Bancorp Bank (NASDAQ:TBBK).
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