Hudson City Bank Stays A Sell

New York-based Hudson City Bancorp, Inc. (HCBK) is now the largest thrift in the nation, based on either assets (>$50 billion) or market capitalization (>$8.0 billion).

HCBK’s 3Q08 earnings of $0.25 per share were in line with our expectations. Results again experienced strong lending revenues from enhanced net interest margin, even though provisioning levels increased and other credit quality metrics expanded.

Despite positive EPS trends, we remain concerned as to the relationship of provisions and non-performing assets as well as the adverse trends with respect to credit quality metrics and regulatory capital ratios.

Thus, we continue to retain our Sell rating on the shares of this company. Our new six-month price target is $13.55 per share.

Subscribe by RSS Subscribe by Email