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UPDATE: Bank Of America Reiterates On Astoria Financial Corp. On Weak Growth Prospects

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In a report published Monday, Bank of America analyst Kenneth Bruce reiterated an Underperform rating on Astoria Financial Corp. (NYSE: AF), but lowered the price target from $12.00 to $11.00.

In the report, Bank of America noted, “AF's core income growth will likely be challenged over the near term. Asset base stabilization is trending behind our expectation and likely remains several quarters away. MF/CRE loan growth is leading to a favorable mix shift, though residential run-off and NIM pressure continues to offset core income growth. AF's credit results and costs are running better than forecast. Given improved credit trends from the NPL asset sale, we now expect AF will enjoy several quarters of zero provision. That said, we see little opportunity for AF to appreciate, as we expect AF to continue to generate ROTE's in the mid-single digit range over the next several years, below many of its peers. With valuation at 19.3x our '15 EPS estimate, we think the stock is more than fully valued. Maintain Underperform.”

Astoria Financial Corp. closed on Friday at $12.16.

Latest Ratings for AF

DateFirmActionFromTo
Apr 2017Keefe Bruyette & WoodsUpgradesMarket PerformOutperform
Mar 2017PiperJaffrayDowngradesOverweightNeutral
Dec 2016PiperJaffrayUpgradesNeutralOverweight

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Posted-In: Bank of America Kenneth BruceAnalyst Color Price Target Analyst Ratings

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