Standpoint Initiates Coverage Of City Holding Co. (CHCO)

Ronnie Moas at Standpoint Research initiated coverage of small cap name, City Holding Co. (NASDAQ: CHCO) with a Buy rating today. He has a 2011-2012 price target on the stock of $40. The shares are currently trading at $30.78. The company has a dividend yield of 4.4%.

According to Google Finance, "City Holding Company is a bank holding company. The Company conducts its principal activities through its wholly owned subsidiary, City National Bank of West Virginia."

City Holding Co. (CHCO) has a market cap of $488 million and the stock is not very liquid, with average daily volume of only 92,000 shares. These are two risk factors that investors must weigh before allocating capital to this security.

In recommending CHCO, Moas said that "asset quality at City Holding Co. continues to improve with non-performing assets, net charge-offs, and past due loans all improving as compared to December 31, 2008. This improvement can be attributed to their disciplined lending approach and the relative stability of the markets in which they operate."