Raymond James analyst Michael Rose lowered his rating for IberiaBank Corp. (IBKC - Get Report) of Lafayette, La., to "Outperform" from "Strong Buy," while lowering his price target for the shares to $55 from $60, and cutting his 2012 EPS estimate by three cents to $2.72 and his 2013 EPS estimate by 15 cents to $3.10.
IberiaBank's shares closed at $45.86 Tuesday, down 6% year-to-date, following a 14% decline last year. The shares trade for 1.2 times their reported March 31 tangible book value of $37.23, and for 14.5 times the consensus 2013 earnings estimate of $3.17. The consensus 2012 EPS estimate is $2.70.
Based on a 34-cent quarterly payout, the shares have a dividend yield of 2.97%. With first-quarter earnings of 66 cents a share, the dividend payout ratio was 52%.Rose said that although he continues to "view the fundamental story positively, a reduction in EPS estimates /price target renders a less attractive risk/reward given uncertainty around expenses, a lower NIM, and slower (but still robust) loan growth." The analyst's $55 price target for IBeriaBank "assumes IBKC shares trade at 1.4x our 1Q13E tangible book value estimate of $39.75, in line with the southeast & southwest peer median." Interested in more on IberiaBank Corp.? See TheStreet Ratings' report card for this stock.