J.P. Morgan Decreases PT on Umpqua Holdings to $13.50 (UMPQ)

J.P. Morgan is out with its report today on Umpqua Holdings UMPQ, decreasing its price target from $14 to $13.50. In a note to clients, J.P. Morgan writes, "UMPQ reported EPS of $0.07. Cutting through the noise, with additional guidance provided by management on the call, core EPS appears to be $0.09, a penny below our $0.10 estimate and in line with consensus. UMPQ shares trade at 1.38x TBV, or a modest discount to peers. Our revised Dec 2011 target of $13.50 assumes the shares trade at 1.56x our YE11E TBV of $8.66, which implies the valuation gap narrows. On a normalized EPS basis (which we view as 2014 earnings power for all of our banks) the shares trade at 8.8x, or a 16% discount to peers. No change to our OW rating." Shares of UMPQ closed Thursday at $11.60, down 3.81% from Wednesday's close.