Jefferies Initiates CapitalSource Coverage: Buy, $7.25 PT

Jefferies initiated CapitalSource (NYSE: CSE) coverage with a Buy rating and $7.25 price target in a research report published today.

In the report, Jefferies states, "CSE is one of the few financial companies that is simultaneously returning capital to shareholders and growing the loan book. While we expect CSE to exhibit greater credit sensitivity than most peers, we view this as an acceptable risk considering management's focus on cost control, capital return to shareholders, a high net interest margin, and a loan book that is growing."

Shares of CapitalSource closed today at $6.08, down 1.30% from Monday's market close.