Compass Point Has Positive Outlook On Beneficial Mutual Bancorp

In a report published Friday, Compass Point analyst Laurie Havener Hunsicker reiterated a Buy rating and $17.00 price target on Beneficial Mutual Bancorp (NASDAQ: BNCL).

In the report, Compass Point noted, “BNCL, trading at 100% of our estimated market-adjusted fully-converted tangible book (FCTB), assuming a Max-closing level of the range, continues to be one of the most attractively priced, on a P/TB basis, of the Mid-Atlantic banks in the $3-10 billion asset range. We reiterate our 12-month price target of $17, representing 1.2x market-adjusted FCTB (our price target will adjust following completion of the offering; please refer to page 4 for new target at each closing level of the range).

"Of note, the Form S-1, filed August 21, came in at a level below our expectations (1.3808 exchange ratio at the Max); however, we now assume that this deal will easily get completed at a 100% IPO-P/TB (Max level of the range), and possibly have only a small syndicate (especially as every 2nd step transaction that has come to market in 2014 has worked and BNCL's pricing is among the cheapest relative to its size); accordingly, we believe that minority shares in today's market will trade at a premium to exchange ratio math (ie, above 1.3808 * $10 = $13.81 exchange ratio adjusted to $10 IPO, assuming a Max closing level).”

Beneficial Mutual Bancorp closed on Thursday at $13.85.