Market Overview

UPDATE: Compass Point Initiates Sterling Financial Corporation at Neutral on Revenue, NII Outlook

Share:

Compass Point initiated coverage on Sterling Financial Corporation (NASDAQ: STSA) with a Neutral rating and a $20 price target.

Compass Point noted, "In order for us to see additional upside, loan growth would need to exceed our 5% annual estimate or the company's mortgage banking market share would need to increase beyond our expectation (30% share increase). Our $20 price target is based on our FY14 EPS estimate of $1.23 and an 8.5% required return. Our price target implies approximately 12x our EPS estimate plus $5.00 for excess capital (see page 10 for more details). We issue FY12/13/14 EPS estimate of $6.36, $1.30, and $1.23, respectively. We are notably below FY14 consensus due to our expectations for declines in mortgage banking revenues (declining volumes and gain on sale spreads) and persistent NII headwinds."

Sterling Financial Corporation closed at $21.31 on Thursday.

Latest Ratings for STSA

DateFirmActionFromTo
Feb 2020MizuhoInitiates Coverage OnBuy
Oct 2019Credit SuisseInitiates Coverage OnOutperform
Oct 2013DA DavidsonUpgradesNeutralBuy

View More Analyst Ratings for STSA
View the Latest Analyst Ratings

 

Related Articles (STSA)

View Comments and Join the Discussion!

Posted-In: Compass PointAnalyst Color Initiation Pre-Market Outlook Analyst Ratings

Latest Ratings

StockFirmActionPT
ASMLWells FargoMaintains430.0
COSTOppenheimerMaintains355.0
SAPRBC CapitalMaintains150.0
BYNDBernsteinMaintains133.0
CMGCredit SuisseMaintains1,150.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com