UPDATE: Keefe Bruyette & Woods Downgrades Beneficial Mutual Bancorp to Market Perform on Valuation
Keefe Bruyette & Woods reduced its rating on Beneficial Mutual Bancorp (NASDAQ: BNCL) from Outperform to Market Perform with a reiterated $10 price target.
Keefe Bruyette & Woods commented, "From a valuation perspective, as an MHC, we continue to value BNCL through our second step analysis. Assuming a tangible book value pricing multiple of 91%, we arrive at a fully converted tangible book value amount of $11.75. We continue to believe a second step announcement will be a capital-driven event and with a TCE ratio of 11.4% and limited growth opportunities presently, we do not anticipate a conversion in the near term. As such, we discount our fully converted PF TBV amount by 15% to arrive at our target.."
Beneficial Mutual Bancorp closed at $9.81 on Thursday.
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