Wednesday, January 12, 2011

City National's (NYSE:CYN) Guidance Expected to Show Increased Profitability

With an increased in acquisition appetite and expected branch expansion in 2011, Barclays sees City National's (NYSE:CYN) guidance to show increased profitability for the year.

Barclays noted, "We expect CYN to report 4Q10 EPS of $0.76
compared to the $0.68 consensus. Our estimate excludes an expected $6.8-million ($0.08) charge related to its October 16th redemption of $250 million in trust preferred securities...We expect CYN to offer its initial 2011 EPS guidance on its earnings call, which is likely to call for improved profitability in 2011 relative to 2010. We believe its acquisition appetite is increasingly shifting toward traditional M&A and expect it to remain focused on opportunistic branch expansion in 2011."

Barclays maintains an "Overweight" rating on City National, which closed Tuesday at $61.91, gaining $0.19, or 0.31 percent. Barclays has a price target of $65 on them.

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