Sterne Agee Has A Neutral Rating On First Financial Bancorp (FFBC)

Sterne Agee analysts believe that First Financial Bancorp FFBC has favorable longer-term outlook, but they have a neutral rating on this stock because of valuation and modestly below census estimates. First Financial Bancorp (FFBC) trades at 1.6 times price to tangible book value, and according to Sterne Agee calculations, it trades at 14.00 times their 2011E, and 12.9 times their 2012E. Discounted cash flow model, used by Sterne Agee analysts, places the present value of First Financial Bancorp (FFBC) at $18.00 per share, and it closed today at $17.48% with a decline of 0.18 points or 1.02%. Sterne Agee analysts believe that it will be difficult for First Financial Bancorp (FFBC) to beat consensus estimates, and their EPS estimate is approximately 5% below consensus. The estimate range for 2011 is pretty wide; between $1.10 and $1.56. Consensus is at $1.32, and Sterne Agee estimates FFBC's EPS at $1.25. They also expect that FFBC's 2011 results will be solid in comparison to its peers. Analysts noted that volatility in FFBC's reported earnings could be very high due to non-recurring items from recent acquisitions. They also believe that FDIC deals will continue to strengthen results, and with FFBC's better than average capital levels and credit quality, Sterne Agee sees FFBC's overall fundamentals positively.