Capitol Federal Financial (NASDAQ:CFFND) Challenged by Second-Step Conversion

After a recent second-step conversion appraisal value was lowered, FBR revised their EPS estimates for Capitol Federal Financial (NASDAQ:CFFND) significantly.

FBR said, "We reiterate our rating and lower our price target on shares following the lower appraisal value for the company's recent second-step conversion. The second-step conversion was completed at the minimum appraisal value of roughly $1.2 billion, and was priced at $10 per share...However, we believe that once the year is up, management will institute aggressive capital management policies. In light of the new share count resulting from the second-step conversion, we are adjusting our FY11 operating EPS estimate to $0.47 from $1.05."

FBR Capital reiterates an "Outperform" on Capitol Federal Financial, which closed Wednesday at $11.65, down $0.03, or 0.26 percent. FBR has a price target of $13 on them, dropping them from $18.55.