UPDATE: J.P. Morgan Reiterates Neutral Rating, Raises PT on Washington Federal
In a report published Wednesday, J.P. Morgan & Co. reiterated its Neutral rating on Washington Federal (NASDAQ: WAFD), and slightly raised its price target from $17.00 to $18.00.
J.P. Morgan noted, “CY3Q12 results demonstrated an inflection point for WAFD in our view given credit costs reached a new low, at just $5 million of provision expense and OREO gains continuing to add to the bottom line. Meanwhile, despite actions to restructure the balance sheet which will ultimately lower longer term interest rate risk, the impact of the actions and loan contraction is being felt on the top line with spread revenues down another 18% annualized. Loan balances (ex covered) fell another 6% annualized as prepayments continue to offset originations. In fact prepayments this quarter increased 7% sequentially. With QE3 keeping mortgage rates low this quarter and likely to continue doing so for the foreseeable future, we see WAFD continuing to fight the prepayment tide into 2013.”
Washington Federal closed on Tuesday at $16.87.
Latest Ratings for WAFD
|Oct 2015||Keefe, Bruyette & Woods||Maintains||Market Perform|
|Jul 2015||Keefe, Bruyette & Woods||Maintains||Market Perform|
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