Sterne Agee Maintains Neutral on TCF Financials
Sterne Agee reiterates its Neutral rating on TCF Financials (NYSE: TCB) as it lowers estimates following 4Q11 review.
Sterne Agee notes, "Although TCB's consumer focused business model generated excellent profitability through 2007 (ROA: 1.75%; ROE: 25%), the recession and changing regulatory environment over the past four years has reduced returns significantly. Such pressure seems likely to persist through 2013E. We are lowering our 2012E and 2013E EPS to $0.45 (-$0.45) and $0.80 (-$0.40), respectively, to reflect negative revisions in provision, margin, and fee revenue."
TCB closed at $10.52 a share on Tuesday.
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