Market Overview

UPDATE: Sterne Agee Upgrades Popular to Buy on Credit Leverage Catalyst

Share:
Related BPOP
Barclays On Popular Bank: 'Island Life Can Be Tough Sometimes'
Benzinga's Top Initiations
Brexit: No High-Yield Panic Yet (Seeking Alpha)

Sterne Agee raised its rating on Popular (NASDAQ: BPOP) from Neutral to Buy with a $26 price target.

Sterne Agee commented, "BPOP's story has improved considerably from the problems that beset it in recent years, including problem asset inflow and associated reserve build that adversely affected the company from 2010 to 2011. At this stage, the underlying catalyst is centered on credit leverage, including 1.7x reserve coverage of annualized NCOs, 47% coverage of NPLs, and Puerto Rico's lag in housing values relative to the U.S. While the potential for further increases in problem asset formation appears limited and NPAs remain exceptionally high, the inflection point for credit is near in our view."

Popular closed at $21.73 on Wednesday.

Latest Ratings for BPOP

DateFirmActionFromTo
Jun 2016BarclaysInitiates Coverage onEqual-weight
Apr 2016Piper JaffrayInitiates Coverage onOverweight
Feb 2016Merion CapitalInitiates Coverage onOutperform

View More Analyst Ratings for BPOP
View the Latest Analyst Ratings

Posted-In: Sterne AgeeAnalyst Color Upgrades Intraday Update Analyst Ratings

 

Related Articles (BPOP)

View Comments and Join the Discussion!