Chesapeake Financial’s Neutral Rating Reaffirmed at Zacks (CPKF)
Chesapeake Financial (NASDAQ:CPKF)‘s stock had its “neutral” rating reiterated by Zacks in a report issued on Wednesday. They currently have a $18.25 target price on the stock. Zacks‘s target price would suggest a potential upside of 3.69% from the company’s current price.
Zacks’ analyst wrote, “We are maintaining our 2014 diluted EPS estimate for CPKF at $1.70, even though first quarter results were a few cents shy of our estimate, as we expect this shortfall to be made up in the succeeding quarters for 2014. Our initial estimate for 2015 calls for a 6% gain to $1.80 per diluted share. Results will be supported by 4 % growth in noninterest income spurred by moderate improvement in most line items as well as an expected $0.2 million reduction in loss on securities sales, a one-third decrease in the loss provision, and estimated 3% loan growth. This will be partially offset by an estimated 5 basis-point reduction in the net interest margin to a still-healthy 4.35% and a 6% rise in compensation costs as the Company anticipates adding new positions. Non-compensation costs are estimated to be flat in 2015, as expense growth in most line items will be offset by an estimated 33% decrease in cash flow expenses as the Company reduces the loss provision in the cash flow lending program. To review the first quarter, CPKF’s net earnings fell $0.8 million, or 38%, to $1.3 million, while 2014′s first quarter diluted EPS slumped by $0.24, or 39%, to $0.39 from $0.63 posted a year ago. This was only slightly worse than our estimate, which had called for a $0.7 million decline in net earnings to $1.4 million (off by $0.1 million) and a $0.21 drop in diluted EPS to $0.42 (off by $0.03).The primary reason for the difference between reported results and our estimate was that noninterest income fell about $0.1 million short of our projection due to a sharper-than-expected decline in other income (off by about $0.1 million). SNL Financial cited CPKF as one of only 20 banks in the country (and only two in Virginia) to increase dividends by at least 2% per year and at least a cumulative 30% over the past five years. The company recorded cumulative dividend growth of 51.1% over the 2008-2013 period.”
Chesapeake Financial (NASDAQ:CPKF) remained flat at $17.60 during trading on Wednesday. Chesapeake Financial has a 52-week low of $16.85 and a 52-week high of $20.00. The stock has a 50-day moving average of $17.44 and a 200-day moving average of $17.66. The company has a market cap of $57.8 million and a price-to-earnings ratio of 8.96.
To view Zacks’ full report, visit Zacks’ official website.