UPDATE: Compass Point Initiates Capital Bank Financial at Buy on Capital Base

Compass Point initiated Capital Bank Financial

with a Buy rating and a $20.00 price target. Compass Point commented, "We expect earnings momentum to materialize over the next two years as the company sheds legacy credit costs and loan growth begins to ramp. More significant upside exists should management deploy their excess capital into attractive acquisitions. Alternatively, with ample capital and the stock trading at 0.9x TBV and 0.8x an estimated fair value, we believe investors have meaningful downside protection. Further, the depressed valuation offers a very compelling buyback opportunity for the company should the shares languish at this level for an extended period of time." Capital Bank Financial closed at $16.18 on Thursday.