Providian Financial, whose stock has been on a roll since the firm announced a settlement of charges regarding its late-fee policy in July, could rise as high as $160 a share in 12 months, according to an analyst at A.G. Edwards & Sons.
Analyst Joel J. Houck reiterated his "buy" rating for the stock and raised his target price by $25, to $160. He said he expects the company to earn $5.30 per share this year and $6.65 next year. His expects the stock to trade at 25 times next year's per-share earnings. "Investors will continue to focus on Providian's strong earnings-per-share growth and less on legal issues," he predicted. Providian's shares, which gained 10.74% last month, fell 62.5 cents Monday, or 0.52% to close at $118.75.