UPDATE: Guggenheim Raises Associated Banc Corp's PT
According to a research report published this morning, Guggenheim has increased Associated Banc Corp's (NASDAQ: ASBC) PT from $12.50 to $13.
In the report, Guggenheim said, "We think ASBC is fairly valued trading near our $13.00 (+$0.50) price target. While our thesis assumes excess capital will be gradually levered, our upward earnings revision for FY12E is driven by a reduction in provision assumption. We see somewhat higher provision costs and less mortgage income in FY13. ASBC reported 1Q12 EPS of $0.24, which exceeded our $0.21 per share estimate. Upside was a function of nil loan loss provision given improving asset quality and a reserve that equated to 2.5% of loans and 109% of NPLs. Also, mortgage banking revenues rose 82% LQ to $18 million."
Guggenheim maintains its Neutral rating on ASBC, which is currently trading at $13.11.
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