Piper Jaffray Remains Bullish on EverBank Financial (EVER) as Pretax Income and Lower Tax Rates Drive EPS

Piper Jaffray maintained an Overweight rating on EverBank Financial (NYSE: EVER), and cut the price target to $18.50 (from $21.00), following the company's 4Q earnings report. Operating EPS bounced back to $0.34, ahead of the Street's expectations of $0.30. Slightly higher pretax income and a lower tax rate contributed roughly equal amounts to upside.

Analyst Peyton Green commented, "We are lowering our 2016E EPS to $1.42 (-$0.08) and 2017E EPS of $1.65 (-$0.15) to reflect lower net interest income growth going forward. We view the shares as an interesting value given our projected EPS growth of 16% Y/Y over the next two years and a valuation of 9.8x our 2016E, 8.5x our 2017E, and 104% of TBVPS. We are lowering our price target to $18.50, or 13x our 2016E EPS. Our reduced price target reflects lower EPS projections and a P/E ratio of 13x (14x previously) to reflect lower projected returns."

For an analyst ratings summary and ratings history on EverBank Financial click here. For more ratings news on EverBank Financial click here.

Shares of EverBank Financial closed at $13.94 yesterday.

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