Washington Mutual "neutral," target price raised

07/20/06 - D.A. Davidson & Co.

NEW YORK, July 20 (newratings.com) - Analysts at DA Davidson reiterate their "neutral" rating on Washington Mutual Inc (WM), while revising their estimates for the company. The 12-18 month target price has been raised from $45 to $47.

In a research note published this morning, the analysts mention that the company has posted its Q2 EPS short of the estimates and the consensus. Washington Mutual has announced the sale of about $140 billion of mortgage servicing assets for nearly $2.6 billion to Wells Fargo. The company has also announced a share buyback programme for 150 million shares. The EPS estimate for 2006 has been reduced from $3.82 to $3.70. The EPS estimate for 2007 has been raised from $4.20 to $4.25.