S&P Capital IQ Downgrades Hudson City Bancorp from BUY to HOLD

October 28 00:00 2011

NEW YORK, October 28 (RainbowNewsLine.com) – Analyst Erik Oja of S&P Capital IQ downgrades Hudson City Bancorp (NASDAQ:HCBK) from BUY to HOLD, while reducing his estimates for the company. The 12-month target price has been reduced from $10 to $6.50.

Analyst Erik Oja, in a research note published yesterday mentions that the company has posted its Q3 EPS short of the estimates due to a 10.4% decrease in net interest income from Q2 caused by loan & net interest margin decline. The EPS estimate for 2011 estimate has been reduced from $0.79 to a $0.60 loss reflecting a GAAP loss of $1.13 in Q1. According to the analyst, HCBK’s revenues are under pressure from shrinking loan portfolio and net interest margin contraction with no room for improvement in the near term. The target price is lowered on forward four quarter EPS forecast of $0.66.

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