Zacks Investment Research upgraded shares of Westamerica Bancorp. (WABC) from UNDERPERFORM to NEUTRAL on September 24, 2013, with a target price of $51.00.
We are upgrading our long-term recommendation on Westamerica to Neutral from Underperform primarily based on its steadily declining operating expenses. However, the company's second-quarter 2013 earnings missed the Zacks Consensus Estimate due to lower net interest income, partially offset by almost stable fee revenues and a drop in operating expenses. Further, capital and profitability ratios as well as loan and deposit balances declined. However, improved credit quality was among the tailwinds. We don't expect any significant improvement in interest income in the near term due to a still low interest-rate scenario. On the other hand, we anticipate continued synergies from the company's conservative credit culture and stable balance sheet. Further, once the market rebounds to a more conducive operating environment, the company will be able to capitalize on growth opportunities.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Westamerica Bancorp. (WABC),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment