Natwest Securities Corp. has initiated coverage of Delta Financial Corp., Woodbury, N.Y., with a "buy" rating.
The subprime lender went public this fall, and will concentrate on developing business outside of its core New York State lending region. Natwest said it believes that the company's geographic development may deliver long-term growth of 20% to 25%
Additionally, the company's record for managing credit quality is among the best in the industry, Natwest said.
Natwest also reiterated its "buy" rating of Aames Financial Corp., Los Angeles. Aames' stock slid in late October, following reports that the company's accounting practices were overstating profits. The price decline created a buying opportunity, Natwest said.