Wednesday, January 26, 2011

F.N.B. (NYSE:FNB) Favored by FBR on Multiple Catalysts

F.N.B. Corporation's (NYSE:FNB) operating return on tangible common equity is expected to increase into the high teens, says FBR, up from their current 13 percent.

FBR says, "F.N.B. generated an operating return on tangible common equity of 13%, a measure that we expect will increase over time into the high teens, and its TCE ratio improved modestly to 6.01%, despite an unfavorable move in AOCI marks. We favor F.N.B. for its strong profitability, ability to grow loans, rich dividend yield, and its exposure to Marcellus Shale. We reiterate our respective 2011 and 2012 operating EPS estimates of $0.75 and $0.90."

FBR Capital maintains an "Outperform" rating on F.N.B. Corporation (FNB), which closed Tuesday at $10.24, up $0.04, or 0.39 percent. FBR has a price target $11 on F.N.B.

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