Piper cuts PT for TFS Financial on updated valuation model

TFS Financial

10/01/2023 12:00

** Piper Sandler cuts PT for regional lender TFS Financial 
Corporation  TFSL.O  to $16 from $19; maintains 'overweight'
rating
    ** PT cut is based on ~90% of co's fully converted tangible
book value (TBV), following the dividend discount model (DDM),
which calculates the discounted value of the sum of its future
dividend payments
    ** Adds TFSL valuation is tough considering co's mutual
holding co structure
    ** Says co, which is mainly a savings and loan association
(thrift), funded largely by consumer deposits
    ** Net interest margin (NIM) has expanded nicely for co so
far, but pressure lies ahead - Piper 
    ** Brokerage expects loan growth to moderate following its
rapid 14% expansion in the year 
    ** YTD stock is up ~2%, as of last close 
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))