Keefe, Bruyette & Woods Reiterates Outperform Rating on Viewpoint Financial (VPFGD)

Keefe, Bruyette & Woods is out with a research report this morning, where it reiterates its Outperform rating on Viewpoint Financial Group VPFGD; it has a $12.50 price target on the stock. The KBW analysts said, “After adjusting this quarter’s results to reflect the impact of the bank’s recently completed conversion, earnings were $0.10/sh, beating Street expectations by $0.03/sh and KBW estimates by $0.04/sh. The quarter was characterized by stronger net interest income and non-interest income, offset by modestly higher expenses. We adjust our 2010 estimates to reflect this quarter’s results and maintain our $12.50 price target/Outperform rating.” They added, “Risks associated with achieving our price target include, but are not limited to, interest rates, asset quality, and the successful deployment of excess capital. If the bank fails to successfully address these risks, future earnings and the value of the franchise may be negatively impacted.” ViewPoint Financial Group operates as the holding company for Viewpoint Bank, which provides financial services in Dallas/Fort Worth Metroplex. ViewPoint converted to a thrift charter in Jan '06 and to an MHC in Sept '06.