Home Bancshares (HOMB) May Undertake More Acquisitions In 2010
Analysts at Wunderlich Securities reiterate their "buy" rating on Home Bancshares (NASDAQ: HOMB). The target price for HOMB is set to $32.
HOMB acquired the failed Old Southern Bank in Orlando with the help of FDIC. According to Wunderlich Securities, “We believe that such an acquisition would not be possible without a very strong and deep management team, a low-risk credit profile, and abundant capital, all of which are present at HOMB.” The analysts expect “HOMB to record a modest one-time gain on mark-to-market valuations of acquired assets in conjunction with the transaction.”
Wunderlich Securities mentions that “Although Home Bancshares’ first FDIC-acquisition in Florida is smaller than we expected, we believe additional acquisitions are likely to occur in 2010, and the subsequent accretion to both EPS and TBV/share arising from such deals supports our Buy recommendation.”
