Market Overview

UPDATE: D.A. Davidson Downgrades MB Financial on Valuation

Related MBFI
8 US Banking Stocks With Low NPAs & High Net Income Growth
Keefe, Bruyette & Woods Sees Holiday Opportunities For MB Financial
MB Financial declares $0.14 dividend (Seeking Alpha)

In a report published Tuesday, D.A. Davidson analyst Stephen Geyen downgraded the rating on MB Financial (NASDAQ: MBFI) from Buy to Neutral, but reiterated the $30.00 price target.

In the report, D.A. Davidson noted, “We believe MBFI is uniquely positioned to perform quite well on a relative basis if management can successfully grow loans at a mid-single digit pace. Mid single digit loan growth would likely support a NIM near the 3.50% range and drive modest net interest income growth, if cash flows from the securities portfolio are put to work in higher yielding commercial loans. Furthermore, the investment in corporate services over the past several quarters, and the lease business, is likely to contribute to solid growth in fee income vs. peers. Fee income was 34% of revenue at 1Q13 vs. 28% last year at MBFI. We note that mortgage banking is not meaningful to total revenue, as a result, revenue will not be adversely impacted by a drop in mortgage refinance; potentially driving relative strength in MBFI's profitability ratios.”

MB Financial closed on Monday at $28.53.

Latest Ratings for MBFI

Feb 2015JP MorganMaintainsNeutral
Feb 2015Sandler O'NeillUpgradesHoldBuy
Nov 2014Sterne AgeeDowngradesBuyNeutral

View More Analyst Ratings for MBFI
View the Latest Analyst Ratings

Posted-In: D.A. Davidson Stephen GeyenAnalyst Color Downgrades Analyst Ratings


Related Articles (MBFI)

Around the Web, We're Loving...

Get Benzinga's Newsletters