UPDATE: D.A. DavidsonRaises PT on Wilshire Bancorp Following 2Q13 Review

In a report published Wednesday, D.A. Davidson analyst Gary P. Tenner reiterated a Buy rating on Wilshire Bancorp WIBC, and raised the price target from $9.00 to $10.00.

In the report, D.A. Davidson noted, “Maintaining BUY rating and raising price target from $9 to $10. Our new target represents a modest 13x multiple to our revised 2014 Core EPS estimate of $0.77. Given our projected 2014 ROA and ROE of 1.47% and 14.8% we think the stock could benefit from additional multiple expansion over the intermediate term. WIBC reported 2Q13 EPS of $0.16, a penny above our estimate and the Street. Relative to our model, higher than expected spread revenue, no provision, and lower expenses offset the shortfall in fee income and led to the beat. The company posted a 1.63% ROA and a 13% ROE. Loan growth was stout with average loan balances increasing 9.8% annualized with strength in C&I and secured real estate loan segments. Loan originations at $195 million were up slightly sequentially, but still below 2012 levels (flat ex-2Q12 mortgage warehouse production).”

Wilshire Bancorp closed on Tuesday at $8.19.