UPDATE: Citigroup Reiterates on CapitalSource on Model Update
In a report published Wednesday, Citigroup analyst Donald Fandetti reiterated a Neutral rating on CapitalSource (NYSE: CSE), and raised the price target from $12.00 to $14.00.
In the report, Citigroup noted, “We are updating our model to reflect Q3'13 results. CSE reported Q3'13 EPS of $0.24, which included a $0.06 non-recurring tax benefit. We are raising our Q4 estimate to $0.18. Our forward estimates of $0.68 and $0.72 remain unchanged for 2014 and 2015. We are raising our target to $14. Our $14 target reflects the expected consideration to CSE shareholders for the merger, or $14.18 ($2.47 of cash and 0.2837 shares of PACW). The $14 target price represents a 1.95x multiple on CSE Q3'13 stated tangible book value of $7.21, or 20.5x our 2014 EPS estimate of $0.68.”
CapitalSource closed on Tuesday at $14.12.
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|Apr 2014||Keefe Bruyette & Woods|
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