- UBS is positive on Doral Financial (NYSE:DRL) after WHI announced that its has acquired additional rights from DRL, which enables WHI & DRL to treat prior period mortgage transactions between them as true sales under FAS 140. On a net basis, DRL paid $43m to WHI to clean up the last of the accounting issuess related to DRL's mortgage transactions in Puerto Rico.
Firm is hopeful that up-to-date financials should be available in the next 30-60 days. Believes that Doral's stock may rally in the near-term as the company puts its accounting issues behind it. Post restatement, the firm believes the company will still be well capitalized, and expect the compamy to have developed improved internal controls over its accounting processes, interest rate and derivatives risk management. This should help restore some investor confidence in the stock. Maintains Neutral and $7.50 tgt.
Notablecalls: Looks like an actionable call.
Firm is hopeful that up-to-date financials should be available in the next 30-60 days. Believes that Doral's stock may rally in the near-term as the company puts its accounting issues behind it. Post restatement, the firm believes the company will still be well capitalized, and expect the compamy to have developed improved internal controls over its accounting processes, interest rate and derivatives risk management. This should help restore some investor confidence in the stock. Maintains Neutral and $7.50 tgt.
Notablecalls: Looks like an actionable call.
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