UPDATE: Stifel Nicolaus Initiates Medallion Financial with Hold; Fundamentals to Catch Up to Valuation
Stifel Nicolaus initiates its coverage on Medallion Financial (NASDAQ: TAXI) with a Hold rating.
Stifel Nicolaus comments, "We are estimating $0.91 in core earnings for 2012 and $1.13 in 2013. Based on our 2013 estimate the shares are trading with a 10.7% forward earnings yield which is more in line with the peer average. Thus, we are not concerned about deterioration in the stock price as fundamentals will grow into the valuation, but we rate the shares Hold due to what we believe is a better relative valuation in other BDC names."
TAXI closed at $10.52 on Thursday.
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