UPDATE: Compass Point Updates Estimates on Hudson City Bancorp; Lowers PT

According to a research report this morning, Compass Point lowers its PT from $8.50 to $7 on Hudson City Bancorp HCBK following the company's decision to reduce loan production and build capital. Compass Point explained, “Thus, given that the company is putting the brakes on its bread and butter mortgage production, and has little experience in alternative products, we see few alternatives that would be more attractive to shareholders than a sale. Optically, the stock is expensive on a P/E basis, but we continue to like the shares below the $7 range. Absent an inversion of the yield curve, we believe the $6-$6.50 range should serve as a floor for the stock. Further, investors are getting a 5.0% dividend yield in the meantime.” Hudson City Bancorp closed Friday at $7.07 as Compass Point maintains its Buy rating.