Janney Montgomery Scott LLC analyst Richard Weiss initiated coverage of Investors Bancorp Inc. (MHC) at "neutral." Weiss established 2007 and 2008 EPS estimates of 11 cents and 15 cents, respectively.
The analyst wrote in a research report: "Investors' transformation from a lethargic mutual thrift to a more well-rounded financial institution with better funding sources and more diversified revenue drivers will neither be quick nor easy. This shift, which is already underway, will likely take a few more years to accomplish, but is attainable without major missteps given the company's attractive New Jersey markets, conservative management, and ample capital. Until the makeover occurs, the mutual holding structure protects investors by facilitating stock repurchases, allowing cash dividends with lower payout ratios, and providing the potential to unlock value via a second step conversion."