Oppenheimer Comments On TCF Financial Corporation Following Management Meeting
Oppenheimer's initial thoughts after meeting with senior management of TCF Financial (NYSE: TCB) were that the company moved quickly and aggressively in dealing with the challenges to their banking model, but there remains a relatively higher degree of uncertainty about the true earnings power of the company.
Such unpredictability to earnings and to a lesser degree concerns over near-term credit trends support our Perform
rating with the stock now at 10.7x Oppenheimer's new '12 estimate. Success with the lawsuit challenging the Durbin Amendment, higher interest rates and a resurgence in M&A
activity in the banking sector would all be positives for the stock.
Oppenheimer is taking a more conservative view on TCF's future net interest margin and fee income trends and are reducing our estimates. Its 4Q10 EPS estimate is now $0.03 lower at $0.23. FY11 and FY12 estimates are now $0.15 lower at $1.05 and $1.45, respectively.
TCB is trading lower at $15.25
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