UPDATE: Compass Point Lowers Price Target On Beneficial Mutual Bancorp Following Second Step IPO Closing

In a report published Tuesday, Compass Point analyst Laurie Havener Hunsicker reiterated a Buy rating on Beneficial Mutual Bancorp BNCL, but lowered the price target from $15.50 to $14.00. In the report, Compass Point noted, “BNCL closed its 2nd step IPO on 1/12/15, and will trade regular-way on 1/13/15. In this report we exchange ratio adjust (not reduce) all remaining numbers and pricing information. Specifically, we exchange ratio adjust, not reduce, our PT (price target) to $14 target (previously $15.50/1.0999 exchange ratio = $14), still representing 1.25x pro forma tangible book (TB), page 4, lines 24-25. For comparison purposes, page 4 provides historical pricing information to exchange ratio adjust between yesterday's close of $12.04, relative to $10.95 (yesterday's close, exchange ratio adjusted), and all other pro forma pricing metrics. Minority shareholders will receive 1.0999 shares for every share owned (page 4, line 23). BNCL continues to be one of the most attractively priced, on a P/TB basis, of the Mid-Atlantic banks in the $3-10 billion asset range (page 6). BNCL offers investors a unique opportunity to invest in the 2nd largest publicly-traded PA-based bank serving the greater Philadelphia MSA (#10 rank overall); BNCL is a well-capitalized, 160+ year old, clean, $5 billion-asset sized bank (pro forma), trading below PF tangible book with a board/management team that has a proven track record of being good stewards of capital.” Beneficial Mutual Bancorp closed on Monday at $10.95.