Sterling Financial "neutral," target price reduced

07/25/07 - D.A. Davidson & Co.

NEW YORK, July 25 (newratings.com) - Analysts at DA Davidson reiterate their "neutral" rating on Sterling Financial Corporation (STSA), while reducing their estimates for the company. The 12-18 month target price has been reduced from $33.50 to $28.00.

In a research note published yesterday, the analysts mention that the company has reported its 2Q EPS at $0.52. Sterling Financial’s credit quality remained robust, although ratios fell marginally in 2Q, the analysts say. The company has reduced its EPS guidance for 2007 to $2.23-$2.31. The EPS estimates for 2007 and 2008 have been reduced from $2.34 to $2.26 and from $2.64 to $2.52, respectively.