Flagstar Bancorp (NYSE:FBC) was upgraded by Compass Point from a “neutral” rating to a “buy” rating in a research note issued on Thursday, TheFlyOnTheWall.com reports. The firm currently has a $20.00 target price on the stock, up from their previous target price of $15.50. Compass Point’s price target suggests a potential upside of 25.00% from the company’s current price.
The analysts wrote, “We are upgrading shares of Flagstar Bank to Buy from Neutral and increasing our price target to $20 from $15.50 following the disclosure the bank entered into an agreement with Fannie Mae to resolve all representations and warranties for loans originated between 2000 and 2008. The total resolution is $121.5M, but after some adjustments, FBC will pay $93.5M. FBC is fully reserved for the settlement and we do not expect the company to incur additional provisions in any negotiations with Freddie Mac concerning the same origination vintages. We have remained on the sidelines with FBC given the overhang of the Fannie settlement and the potential hit to book value it may have caused. FBC screened as having the most exposure to GSE rep/warrants liabilities of any bank still dealing with GSE rep/warrants. With the announcement of this settlement, we estimate FBC will incur (including remaining liabilities with Freddie Mac) total losses on GSE rep/warrants equal to 0.96% of UPB sold between 2005 and 2009. This compares to the industry average loss rate of 1.29%. The settlement was the biggest hurdle the company needed to overcome before it could effectively restructure its balance sheet.”
Shares of Flagstar Bancorp (NYSE:FBC) traded up 15.94% on Thursday, hitting $18.55. 150,332 shares of the company’s stock traded hands. Flagstar Bancorp has a 52-week low of $12.29 and a 52-week high of $20.38. The stock has a 50-day moving average of $15.23 and a 200-day moving average of $14.60. The company’s market cap is $1.041 billion.
Flagstar Bancorp (NYSE:FBC) last released its earnings data on Wednesday, October 23rd. The company reported $0.16 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.29 by $0.13. The company had revenue of $42.70 million for the quarter, compared to the consensus estimate of $50.33 million. During the same quarter in the previous year, the company posted $1.36 earnings per share. On average, analysts predict that Flagstar Bancorp will post $1.83 earnings per share for the current fiscal year.
A number of other firms have also recently commented on FBC. Analysts at Keefe, Bruyette & Woods raised their price target on shares of Flagstar Bancorp from $15.00 to $17.00 in a research note to investors on Friday, October 25th. They now have a “market perform” rating on the stock. Analysts at FBR Capital Markets raised their price target on shares of Flagstar Bancorp from $20.00 to $23.00 in a research note to investors on Thursday, October 24th. They now have an “outperform” rating on the stock. Two investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The company has an average rating of “Buy” and an average target price of $18.40.
Flagstar Bancorp, Inc is a savings and loan holding company. The Company’s business is primarily conducted through its principal subsidiary, Flagstar Bank, FSB (NYSE:FBC), a federally chartered stock savings bank.
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