Goldman Sachs upgraded Indymac Bancorp (NDE) to trading buy from market outperform.
Analyst Howard Shapiro says the company's shares have been hurt by hedging and arbitrage after its convertible preferred offering. He thinks the stock offers near term upside of 10%-15% or to $25-$26; beyond that expects Indymac to outperform peers. He notes the stronger than industry secular growth rate of 15%, and expects the company to take share and continue to grow as the mortage market transitions from a refinance market into a more normal purchase mortgage market. Shapiro thinks the company is a good, solid franchise and sees $2.00 2001 EPS, and $2.35 for 2002.