Market Overview

UPDATE: Compass Point Initiates NewBridge Bancorp with Buy, $5 PT; Credit Environment Normalizing

Share:
Related NBBC
Bed Bath & Beyond Falls On Downbeat Results; Iron Mountain Shares Jump
Mid-Morning Market Update: Markets Open Lower; Lennar Profit Tops Estimates

Compass Point initiated NewBridge Bancorp (NASDAQ: NBBC) with a Buy rating and a price target of $5 a share.

Compass Point noted, "Similar to most of its community banking peers, NBBC has incurred a significant amount of credit related expenses (over $150M in charge offs) since the beginning of the downturn. However, the bank has made significant progress in cleaning up its balance sheet, and the tailrisk should be nearly eliminated following the anticipated 3Q12 write-downs to its entire portfolio. Credit costs should normalize by early 2013 following the write-downs, though we expect the company will still need to raise common equity in order to repay its $52MM in TARP. In the near-term, sluggish loan growth, the low rate environment, and expense ramp from hiring origination personnel will act as headwinds to more substantial earnings growth."

NewBridge Bancorp closed at $4.25 on Monday.

Latest Ratings for NBBC

DateFirmActionFromTo
Aug 2014Compass PointInitiates Coverage onBuy
Jun 2014Raymond JamesDowngradesOutperformMarket Perform
Jun 2014Keefe Bruyette & WoodsDowngradesMarket Perform

View More Analyst Ratings for NBBC
View the Latest Analyst Ratings

Posted-In: Compass PointAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

 

Related Articles (NBBC)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→