Guggenheim analyst Jeff Davis thinks Tennessee Commerce Bank can, as its top executives have projected, lift its capital ratios to where regulators want them by shrinking its balance sheet and injecting some parent-company cash. In a note to investors last week, he lowered his price target and earnings estimates and said he expects the Franklin company (Ticker: TNCC) will have to go back to the market for more capital "because we do not think the company can earn enough money the next few years to fund TARP redemption and meet enhanced capital requirements."
Payment of accrued but unpaid TARP and TPS dividends, which total about $2.5 million per year, will have to be funded, too [...] We also assume the issue will be put on hold until 2013, which may prove to be optimistic depending on how profitability evolves.
Over at Goldman Sachs, analyst Sloan Bohlen has upgraded Brookdale Senior Living to 'buy' from 'hold' after a two-and-a-half-week correction took the Brentwood-based company's shares from above $27 to about $25. Bohlen now sees the stock (Ticker: BKD) going to $30 — up from $28 in March — and also has raised his cash flow estimates on signs of pricing strength.
The number-crunching and back-testing analysts at Standpoint Research are again bullish on shares of Cracker Barrel Old Country Store, which have retreated about 10 percent so far this year. They've hiked their rating to 'buy' from 'hold' and have a target of $58. Cracker Barrel (Ticker: CBRL) is changing hands this morning at $48.90, down about 1 percent from yesterday's close.
Even though shares of Brookdale Senior Living (Ticker: BKD) have doubled since Labor Day, Goldman Sachs analyst Sloan Bohlen sees them inching a bit higher still. Bohlen has lifted his price target to $28, about 3 percent above where they closed Tuesday trading.
"We are pleased that RBC and PNC have recently joined with the other lenders in our Line of Credit and that these five strong financial institutions have shown their support of Brookdale. This expansion of the credit line furthers our strategy of using positive cash flow to delever the Company's balance sheet while simultaneously creating financial flexibility to pursue opportunities as they arise."Brookdale (Ticker: BKD) yesterday reported fourth quarter and year-end financial results that bested 2009 thanks to better occupancy, rental rates, and expanded capacity. The stock is up more than 8 percent in early trading Thursday.