Washington Mutual "neutral," target price raised

01/19/06 - D.A. Davidson & Co.

NEW YORK, January 19 (newratings.com) - Analysts at DA Davidson reiterate their "neutral" rating on Washington Mutual Inc (WM), while reducing their estimates for the company. The 12-18 month target price has been raised from $41.00 to $42.50.

In a research note published this morning, the analysts mention that the company has posted its Q4 EPS short of the estimates and the consensus. Washington Mutual has guided to loan loss provisions of $750 million-$850 million, reflecting a decline in credit quality during 2006 on account of increased interest rates. The EPS estimate for 2006 has been reduced from $4.10 to $3.90.