Washington Mutual "market perform," estimates revised

06/08/06 - Punk Ziegel & Co.

NEW YORK, June 8 (newratings.com) - Analyst Richard X Bove of Punk Ziegel & Co maintains his "market perform" rating on Washington Mutual (WM), while revising his estimates for the company. The target price is set to $46.

In a research note published this morning, the analyst mentions that The Mortgage Bankers Association has indicated that mortgage originations in the current year are likely to decline by 18%. Washington Mutual's core business is being adversely impacted by the weak housing markets, the analyst adds. The EPS estimates for 2006 and 2007 have been reduced from $3.95 to $3.85 and from $4.01 to $3.91, respectively. The EPS estimate for 2008 has been raised from $4.12 to $4.20.