Wunderlich Lowering Price Target On Home BancShares (HOMB)

Wunderlich Securities is lowering its price target on shares of Home BancShares, Inc. HOMB to $26 from $29, but is keeping its Buy rating on shares. In the note sent to clients, Wunderlich writes, "We maintain our Buy rating on shares of Home BancShares (HOMB), but we are lowering our price target by $3 to $26 after the company announced significant NCOs related to problem credits in Florida and Arkansas. HOMB expects to report a net $22.9 million pre-tax gain on two FDIC-assisted acquisitions completed during 4Q. HOMB also charged off approximately $53 million of loans and will record a provision for loan loss of roughly $60 million to $65 million, in addition to taking a $3.6 million charge related to fraudulent bonds in Arkansas. We would use yesterday's selloff as a buying opportunity, as we view these actions as nonrecurring in nature." Shares of HOMB lost $2.74 yesterday to close at $20.23, a loss of 11.93%.