Credit Suisse Investment Banking Pitch Book slide image

Credit Suisse Investment Banking Pitch Book

Selected Wall Street equity research analysts summary Ratings, target stock price and EPS estimates Broker Janney Montgomery Scott Keefe, Bruyette & Woods Mean Osprey management estimates Date 8/2/2017 8/2/2017 Rating Source: FactSet, Osprey public filings and Osprey management as of September 2017. Note: Market data as of 10/3/17. (1) Based on Osprey closing stock price of $11.88 per share on 10/3/17. Buy Hold Selected commentary We are encouraged that in a period of stagnant balance sheet growth, management has been able to reduce costs. We also note that as LIBOR rates continue to rise, the rate floors on [Osprey's] loans are no longer an issue and the company's asset-sensitive balance sheet can now be realized. Lastly, management's commentary on today's call seems to indicate that the company, or parts of it, could be up for sale. Trading at a nearly 30% discount to book value, we think [Osprey] is undervalued; thus we maintain our BUY rating and $14 fair value estimate (FVE) on [Osprey].35 August 2, 2017 Janney Target stock price ($) $14.00 12.00 PRELIMINARY | SUBJECT TO FURTHER REVIEW & REVISION $13.00 Implied upside to current stock price(¹) 17.8% 1.0 9.4% '17E $0.40 0.45 $0.43 $0.39 EPS '18E $0.67 0.71 $0.69 $0.73 [Osprey's] results this quarter were generally weaker than our expectations on the top-line, although there are a number of positive items including better expense management and a lower non-performing loan rate qtr/qtr. We are remaining on the sidelines until we see more stable earnings growth and stronger progress toward the double-digit pre-tax ROE target.55 August 2, 2017 KBW Confidential 13 Ⓒ Credit Suisse Group AG and/or its affiliates. All rights reserved.
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