Will This Upgrade Help Everbank Financial Corp (EVER) Today?

NEW YORK (TheStreet) -- Everbank Financial Corp  (EVER) has been upgraded to "buy" from "neutral" with a $23.25 price target, Sterne Agee said Monday. The firm said Everbank should see higher net interest income, in addition to its cost-cutting measures. 

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Separately, TheStreet Ratings team rates EVERBANK FINANCIAL CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate EVERBANK FINANCIAL CORP (EVER) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, EVER's share price has jumped by 25.80%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • EVERBANK FINANCIAL CORP's earnings per share declined by 40.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EVERBANK FINANCIAL CORP increased its bottom line by earning $1.03 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $1.03).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, EVERBANK FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income has significantly decreased by 36.0% when compared to the same quarter one year ago, falling from $28.85 million to $18.45 million.

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