UPDATE: Compass Point Initiates Valley Financial at Buy on Outlook
Compass Point initiated coverage on Valley Financial (NASDAQ: VYFC) with a Buy rating and an $11 price target.
Compass Point said, "The Roanoke, VA based bank, with $785MM in assets and eight branches, has a solid franchise due to its core deposit mix (66% of total funding) and strong regulatory capital levels (13.5% Tier 1 ratio as of 3Q12). … [W]e believe the stock should eventually trade to the $11 level based on our expectation that the company will earn its cost of capital (9.0%) in FY14 even after factoring in a $7.0MM equity raise."
Valley Financial closed at $9.20 on Thursday.
Latest Ratings for VYFC
|Nov 2014||Compass Point||Reiterates||Neutral|
|Jul 2013||Compass Point||Maintains||Buy|
|Dec 2012||Compass Point||Initiates Coverage on||Buy|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.