UPDATE: Compass Point Downgrades Union First Market Bankshares to Neutral on Valuation
Compass Point downgraded Union First Market Bankshares (NASDAQ: UBSH) from Buy to Neutral and announced a $18.00 price target.
Compass Point said, "We are downgrading our rating from Buy to Neutral as shares have achieved our price target. Year to date, UBSH has appreciated 10.5% (15.3% since our initiation) versus 3.3% for the BKX. In order for the stock to outperform from these levels, we believe the company will need to attain its targeted efficiency ratio (62-63%) and/or deploy its $62MM in excess capital into an accretive acquisition (given their stronger currency/stock price). Further, loan growth would need to exceed our 5% estimate in FY13. Overall, we continue to view the company favorably, though believe the shares are fairly valued at current levels and a buy rating is no longer justified."
Union First Market Bankshares closed at $18.01 on Wednesday.
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