Shares of UCBH Holdings Inc., a San Francisco banking company catering to Chinese-Americans, shed 13.8% Monday after a pair of analysts cut their target prices and one downgraded the stock.
Chris Stulpin of D.A. Davidson & Co. lowered his target price 6.7% and cut his rating on the stock to "neutral," citing a decline in bank valuations in recent weeks.
Julianna Balicka of KBW Inc.'s Keefe, Bruyette & Woods Inc. cut her target price by 21%. She wrote in a note that she expects the holding company of United Commercial Bank to post a loss for the fourth quarter, as well as for all of last year and this year. Previously she had expected it to report profits for all three periods.
Mr. Stulpin still expects UCBH to post a profit for the three periods. In a research note, he called its earnings potential "promising" and referred to its operations in China as "a source of strength."
UCBH has "ample capital," he wrote, and its Chinese operations "will help materially diversify earning streams post economic cycle." Accordingly, the company "remains a strong and attractive franchise."
A UCBH spokesman would not discuss the analyst notes.