24 de marzo de 2008 / 11:45 / en 9 años

UPDATE 1-FBR cuts '08 earns view for Wells Fargo, many others

 (Adds details)
 March 24 (Reuters) - Friedman, Billings, Ramsey lowered its 2008 earnings estimates and cut its price target on several U.S. financial companies, including Wells Fargo & Co (WFC.N), on expectations of higher credit losses and lower gain-on-sale margins in mortgage banking.
 "We remain cautious in our outlook for financial institutions, as we expect that capital levels will be further constrained by growing losses, strained profitability, and reduced mortgage-backed security (MBS) valuations," analyst Paul Miller wrote in a note to clients.
 "We consider the industry under-capitalized and expect that necessary capital raises will dilute common shareholders."
 Banks and thrifts are also likely to take more write-downs on both agency and non-agency securities in the quarter, as the lack of liquidity in fixed income markets is pressuring prices for mortgage securities, Miller said.
 The analyst expects book values to be reduced by negative mark-downs on securities portfolios in the first quarter. He estimated that agency MBS will be marked down by 1 percent to 3 percent, and non-agency MBS by 15 percent to 20 percent.
 "Potential marks are more significant for IndyMac Bancorp IMB.N than the industry as a whole," Miller said. He said 86 percent of IndyMac's $7.3 billion MBS portfolio was non-agency securities, and just 1 percent agency securities, while most companies have largely agency portfolios.
 Miller cut his 2008 operating earnings view for National City Corp NCC.N, but upgraded the stock to "market perform" from "underperform" on valuation.
 The following table has the price target and estimate changes on financial companies:  COMPANY NAME           RATING        PRICE TARGET   2008 EPS VIEW MARCH 20
                                     New   Old     New   Old   Close Price  Cathay General  Bancorp  (CATY.O)      Underperform    $15   $23     $1.85 $2.20   $23.09  Comerica Inc (CMA)     Market Perform  $36   $38     $2.80 $3.10   $39.53  East West Bancorp  (EWBC.O)               Market Perform  $16   $30     $1.65 $1.90   $19.20  First Community  Bancorp FCBP.O       Outperform      $26   $40     $2.65 $2.90   $27.94  FirstFed Financial    FED.N                Underperform    $20   --      $1.70 $2.30   $30.31  Frontier Financial     Corp FTBK.O          Underperform    $15   $17     $1.47 $1.61   $18.20  IndyMac IMB.N        Underperform    $5    --     -$1.70 -$0.80   $5  NewAlliance Bancshares  NAL.N                Market Perform  $12   $14     $0.50 $0.55   $13.08  National City NCC.N  Market Perform  $10   $14     $0.80 $1.00   $11  New York Community      Bancorp NYB.N        Market Perform  $15   $18     $0.96 $0.95   $18.98  People's United   Financial Inc (PBCT.O) Outperform      $15   $17     $0.55 $0.65   $17.54  Signature Bank  (SBNY.O)               Outperform      $30   $34     $1.45 $1.50   $27.32  SVB Financial Group     (SIVB.O)               Market Perform  $46   $50     $2.40 $2.75   $45.94  Sovereign Bancorp  SOV.N                Underperform    $8    --      $0.55 $0.70   $10.15  TCF Financial TCB.N  Market Perform  $17   $18     $1.65   --    $20.16  Washington Mutual  (WM.N)                 Underperform    $9    --     -$1.15 -$1.00   $11.70  Washington Federal  WFSL.O               Market Perform  $20   $17     $1.45 $1.50   $24.43  Wells Fargo (WFC.N)    Underperform    $23   --      $2.30 $2.40   $32.55  Zions Bancorp (ZION.O) Market Perform  $47   $55     $4.25 $5.00   $50.52   (Reporting by Tenzin Pema and Ramya Dilip in Bangalore; Editing by Jarshad Kakkrakandy, Vinu Pilakkott)   

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