United Western: Sandler O’neill Initiates With A “Hold” Rating
December 17, 2009 1:54 PM
Analysts at Sandler O’neill initiates coverage on United Western Bancorp, Inc. (NASDAQ: UWBK)(FREE stock trend analysis) with a “Hold” rating and a $3 price target.
Sandler says “With a seasoned management team, improved capital base, and compelling market footprint and strategy, we think United Western's long-term prospects are attractive. Furthermore, the company has made solid progress in reducing its exposure to certain higher risk assets, such as construction, land, and development (C/L/D) loans and private label RMBS.
“That said, the company could face some near-term operating challenges posed by the cost of holding a significant balance of liquid assets, some lingering uncertainty regarding potential costs related to credit and/or the securities portfolio, and an informal regulatory agreement (MOU)(FREE stock trend analysis) that the company has announced it has entered into with the OTS.”
They are establishing 2009, 2010, and 2011 EPS estimates of ($0.38), ($0.17), and $0.15, respectively.
Today, Shares of UWBK are down 10% to $2.44.
