Washington Mutual "market perform," estimates raised

Wednesday, February 22, 2006 7:44:05 AM ET
Punk Ziegel & Co.

NEW YORK, February 22 (newratings.com) - Analyst Richard X Bove of Punk Ziegel & Co reiterates his "market perform" rating on Washington Mutual (WM.NYS), while raising his estimates for the company. The target price is set to $45.

In a research note published this morning, the analyst mentions that the earnings estimates have been raised to reflect adjustments in the mortgage servicing rights (MSR) valuation and trading assets income and loss. Washington Mutual is expected to witness near-term pressure on mortgage originations and margins and an increase loan loss provisions, the analyst adds. The EPS estimates for 2006 and 2007 have been raised from $3.42 to $3.90 and from $3.43 to $4.12, respectively.