DRL - The Biggest Loser
Analysts at Cantor Fitzgerald downgrade Doral Financial Corp (NYSE: DRL) to "sell." The target price for DRL has been reduced from $6.50 to $4.
According to Cantor Fitzgerald, “DRL did not win any of the three Puerto Rico banks that the FDIC closed and sold last Friday. This was a surprise to us because: (a) the structure of Doral's recent private placement of common equity ($3.00 per share if no acquisition, $4.75 per share if an acquisition) gave Doral a big incentive to bid aggressively; and (b) with a relatively narrow and stagnant franchise, in our view, this was Doral's major opportunity to grow.”
The analysts expect DRL to focus on the strategic opportunity to pick up market share by pursuing customers of the failed banks. More Analyst Ratings here
