Wunderlich Securities Raises 2011 Estimate On HOMB

Wunderlich Securities is reiterating its Buy rating on shares of Home BancShares, Inc. HOMB as well as its $26 price target. “Home BancShares reported a 4Q10 loss per share of $0.51, which beat our estimate by $0.10 and consensus expectations by $0.18,” Wunderlich Securities writes. “Asset quality came in as expected given the company's updated guidance on January 3. “While HOMB's 4Q results represented a setback, we view these actions as nonrecurring in nature and do not expect a change in the company's acquisition strategy. With abundant capital, Home BancShares is a strong community bank that we believe will continue to grow via opportunistic acquisitions in its markets.” Wunderlich Securities said that with expectations that NPLs have peaked, “we are raising our 2011 EPS estimate from $1.25 to $1.40. We are also establishing a 2012 EPS estimate of $1.50 per share at this time. We project tangible book value per share of $13.69 for 2011 and $14.93 for 2012.” Home BancShares closed Thursday at $20.43.