BankUnited (NYSE:BKU) stock was recently downgraded from Outperform to Neutral according to analysts reports. This was mostly based on the increased expenses that the company has incurred but there is a lot of potential gfor growth for this company. Organic as well as inorganic growth is expected for the company based on the healthy levels of liquidity that it has displayed.
The rising expenses seem to be a major cause of worry for BankUnited. The management also has expectations that this will only increase in the coming quarters because of the recent expansion plans that the company has been on. Also because the interest rate environment is not expected to show any improvements in the near future, BankUnited is anticipated to experience a significant amount of Margin Pressure in its near-to-mid terms.
The earnings ESP for the company for the third quarter is 0.00%. The Zacks ranking of a 3 which means a rating of hold makes analysts apprehensive of the positive earnings and it would be nothing but a surprise if it has positive earnings. One bright prospect for the company however is that the earnings that it had in the second quarter of 2013 were significantly higher than the estimates provided by Zacks.
BankUnited is usually an attractive pick for investors who seek yield. The company also has a strong capital level and the balance sheets are also well placed. Its expected organic expansion through well thought of acquisitions also make it an attractive investment. The robust capital deployment plans thet the company has taken on is also encouraging with a greater emphasis on the commercial loan portfolio which will prove helpful in its growth in the forward direction.
BankUnited is headquartered in Florida and has assets worth 13.1 billion USD. It has 98 banking centers in Florida spread across 15 different counties and it also has 4 in the New York Metropolitan area. It was ranked 10 in the Forbes list for best banks in America.
