TAXI Making Progress, But Growth Outlook Keeps Rating Neutral

Medallion Financial Corporation TAXI reported 2Q GAAP EPS of $0.17 (including an $0.04 net benefit from ceasing SPAC operations) and credit quality with its parent company appears to be controlled, Piper Jaffray reports. 40% of the bank's portfolio and 20% of total managed loans are primarily boat, RV, and trailer loans. The riskiness of these assets left Piper Jaffray very cautious through '07 and '08, but Medallion's credit control instilled confidence. Estimates for Medallion have been raised for 2010/2011 due to a higher loan portfolio, according to Piper Jaffray, and EPS estimates have been raised for 2010/2011 to $0.66/$1.01 from $0.85/$0.97 based on 1Q and 2Q results. Piper Jaffray maintains its Neutral rating and $9 price target. Medallion Financial Corporation closed yesterday at $7.01.