UPDATE: Bank Of America Reiterates On Astoria Financial Corp. On Weak Growth Prospects

Dwight Einhorn

Mon, Oct 20, 2014, 10:54 AM

In a report published Monday, Bank of America analyst Kenneth Bruce reiterated an Underperform rating on Astoria Financial Corp. (NYSE: AF), but lowered the price target from $12.00 to $11.00.

In the report, Bank of America noted, “AF's core income growth will likely be challenged over the near term. Asset base stabilization is trending behind our expectation and likely remains several quarters away. MF/CRE loan growth is leading to a favorable mix shift, though residential run-off and NIM pressure continues to offset core income growth. AF's credit results and costs are running better than forecast. Given improved credit trends from the NPL asset sale, we now expect AF will enjoy several quarters of zero provision. That said, we see little opportunity for AF to appreciate, as we expect AF to continue to generate ROTE's in the mid-single digit range over the next several years, below many of its peers. With valuation at 19.3x our '15 EPS estimate, we think the stock is more than fully valued. Maintain Underperform.”

Astoria Financial Corp. closed on Friday at $12.16.

Latest Ratings for AF

Oct 2014	Bank of America	Maintains	Underperform
Oct 2014	Keefe Bruyette & Woods	Maintains	Market Perform
Oct 2014	FBR Capital	Maintains	Market Perform

View More Analyst Ratings for AF
View the Latest Analyst Ratings

See more from Benzinga

‘Americans just work harder’ than Europeans, says CEO of Norway’s $1.6 trillion oil fund, because they have a higher ‘general level of ambition’
"We are not very ambitious. I should be careful about talking about work-life balance, but the Americans just work harder.”
Fortune•7h ago
Mark Zuckerberg got $24.4 million in ‘other compensation’ in 2023—but Meta also treated staff well, with the median employee making $379,000
On paper, Mark Zuckerberg is Meta’s lowest-paid employee, with a $1 dollar salary and no bonus.
Fortune•1d ago
Javier Milei Fuels Wild Rally That Makes Peso No. 1 in World
(Bloomberg) -- Four months into office, Argentine President Javier Milei has pulled off a critical feat in a country long ravaged by runaway inflation: He stabilized the currency.Most Read from BloombergUS Economy Slows and Inflation Jumps, Damping Soft-Landing HopesMalaysia in Talks With Tycoons on Casino to Revive $100 Billion Forest CityBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsZuckerberg Asks for Patience as Meta’s AI Push Spooks MarketHow to Get a Meeting With
Bloomberg•1h ago
Southwest will limit hiring and drop 4 airports after loss. American Airlines posts 1Q loss as well
Southwest Airlines will limit hiring and stop flying to four airports as it copes with weak financial results and delays in getting new planes from Boeing. Both Southwest and American Airlines reported first-quarter losses Thursday. Demand for travel remains strong, including among business flyers, but airlines are dealing with higher labor costs, and delays in getting new aircraft from Boeing are limiting their ability to add more flights.
Associated Press Finance•7h ago
$433 Billion Gone! One Stock Loses More Value Than Tesla
Tesla's loss of $328.3 billion this year in stock value certainly hurts. But it's only the second-largest market value loss in the S&P 500.
Investor's Business Daily•1d ago
Hertz loses another $200 million from its EVs
Car-rental operator Hertz reported it lost another $200 million due to its EV gamble.
Yahoo Finance•43m ago
Southwest to Exit Four Airports as Boeing’s Problems Ripple Through Industry
Southwest Airlines is pulling out of some airports and cutting costs as it grapples with lackluster earnings and delays of new Boeing planes.
The Wall Street Journal•3h ago
The Vanguard 500 Index Fund Is Great, But Another Vanguard ETF Has Outperformed It the Past Decade
This growth ETF has nicely outperformed the S&P 500 since its inception.
Motley Fool•8h ago
Here Are My Top 5 Dividend Kings to Buy Right Now
Dividend Kings are hard to come by, but these five stocks offer investors some great passive income opportunities.
Motley Fool•5h ago
China's Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses
With rising inflation, American consumers are increasingly turning to the Chinese e-commerce platform Temu for their shopping needs. With its enticing tagline “Shop like a billionaire,” Temu has captured 17% of the U.S. market share, posing a challenge to traditional American retailers such as Amazon.com Inc., Dollar Tree Inc. and Five Below Inc. The rise highlights the lucrative and disruptive nature of startups. Owned and operated by PDD Holdings Inc. (NASDAQ:PDD), Temu offers a wide range of
Benzinga•21h ago

News

Life

Entertainment

Finance

Sports

New on Yahoo

Yahoo Finance

UPDATE: Bank Of America Reiterates On Astoria Financial Corp. On Weak Growth Prospects

Recommended Stories

‘Americans just work harder’ than Europeans, says CEO of Norway’s $1.6 trillion oil fund, because they have a higher ‘general level of ambition’

Mark Zuckerberg got $24.4 million in ‘other compensation’ in 2023—but Meta also treated staff well, with the median employee making $379,000

Javier Milei Fuels Wild Rally That Makes Peso No. 1 in World

Southwest will limit hiring and drop 4 airports after loss. American Airlines posts 1Q loss as well

$433 Billion Gone! One Stock Loses More Value Than Tesla

Hertz loses another $200 million from its EVs

Southwest to Exit Four Airports as Boeing’s Problems Ripple Through Industry

The Vanguard 500 Index Fund Is Great, But Another Vanguard ETF Has Outperformed It the Past Decade

Here Are My Top 5 Dividend Kings to Buy Right Now

China's Temu Takes Over 17% Of US Market Share, Cutting Jobs From American Amazon And Decimating Small Businesses