Shares of Washington Mutual Inc., the embattled Seattle thrift company that lost big on bad mortgage bets last year, have rebounded some this year, but Robert Lacoursiere, an analyst at Banc of America Securities, said takeover speculation has given the stock an artificial boost.
"A takeover remains unlikely" Mr. Lacoursiere wrote in a research note published Monday, because of ongoing credit problems in the sector and Wamu's own forecast that its loan-loss provisions will remain elevated this year.
There is only about a 25% chance that the company will be sold this year, he wrote.
Kerry Killinger, Wamu's chairman and chief executive, said in an interview last month that a sale was not part of his company's plan for this year. A spokesman for the company would not discuss the note Monday.
Wamu's shares traded at a 52-week high of $45.56 on Feb 20 but hit a 52-week low of $10.73 on Jan. 9. After dropped nearly 70% last year, the stock has climbed rose nearly 33% this year, to close at $18.08 Friday.
On Monday the shares fell 7% to $16.80.
Mr. Lacoursiere has set a yearend target price of $15 for Wamu's stock.
