Jefferies upgraded IndyMac Bancorp (NDE ) to buy from hold.
Analyst Charlotte Chamberlain says the company's new 2003 earnings per share guidance went from the midpoint of $2.75, to $3.00, and the 2004 earnings per share guidance debuted with a $3.07 midpoint. Chamberlain says the annual dividend jumped 33%, to 80 cents. She notes most important from the market's perspective was what IndyMac didn't report: It didn't show any operational or mortgage-related derivatives losses.
Chamberlain says credit quality is far from pristine, provisioning again exceeded charge-offs that were primarily due to an $11 million increase in construction loans. She raised the $2.70 2003 earnings per share estimate to $3.00, and upped the $2.45 2004 estimate to $3.05. She set a $33 target.