Compass Point Sees Slow Trek To Profitability Continue For The First Marblehead Corporation Despite Ongoing IRS Overhang

In a report published Thursday, Compass Point analyst Michael Tarkan reiterated a Neutral rating and $6.00 price target on

. In the report, Compass Point noted, “We are maintaining our Neutral rating and $6.00 price target on FMD shares after the company reported slightly weaker-than-expected 4Q14 earnings that were highlighted by modestly lower revenue growth and another decline in cash usage. Despite the slight miss, management continues to demonstrate an ability to control costs while revenues remain relatively depressed, and although we expect more can be done, profitability and cash usage continues to move in the right direction. The company also remains on track to dispose of its bank subsidiary, which should drive improved capital flexibility down the road. While the IRS overhang remains, we expect shares to ultimately find support as fundamentals continue to slowly improve.” The First Marblehead Corporation closed on Wednesday at $4.71.