National City "market perform," estimates revised

Monday, July 31, 2006 5:29:04 AM ET
Punk Ziegel & Co.

NEW YORK, July 31 (newratings.com) - Analyst Richard X Bove of Punk Ziegel & Co maintains his "market perform" rating on National City (NCC.NYS), while revising his estimates for the company. The target price is set to $38.

In a research note published this morning, the analyst mentions that the company has posted its 2Q EPS ahead of the estimates. Due to the weakening outlook for the mortgage industry, National City is implementing several measures to limit its loan losses and reduce its balance sheet, the analyst adds. The pressures that National City is facing have reduced the visibility into the company’s EPS going forward, Punk Ziegel & Co says. The EPS estimate for 2006 has been raised from $3.05 to $3.06. The EPS estimate for 2007 has been reduced from $3.24 to $3.22.