Legg Mason upgrade boosts Loyola Capital Corp. stock

March 16, 1995|By David Conn | David Conn,Sun Staff Writer

Loyola Capital Corp.'s stock rose sharply yesterday on heavy trading volume as Legg Mason Inc. upgraded its opinion and added Loyola to its "recommended list" of stocks.

Shares of Loyola, the parent of Loyola Federal Savings Bank, rose $1.50 to $22.625 in trading on the Nasdaq over-the-counter market. Volume was 171,000 shares, or more than 17 times the average volume.

Legg Mason analyst Janet S. McCabe issued a two-page report yesterday that called Loyola a "clean, conservatively managed institution" that represents one of the last attractive takeover opportunities for banking companies in the Baltimore area.

"Loyola is a good, solid company in an industry where limited growth opportunities are driving consolidation," Ms. McCabe wrote. She upgraded Loyola to a rating of "Buy-1" from "Hold-2."

Based on its earning power alone, Loyola is worth about $24 a share, according to Ms. McCabe. But takeover speculation should add an additional $3 a share in the next year, and an acquisition, if it should occur, could come at a price of $31 to $35 a share, she wrote.

"I think the stock's got a lot of room to go," said Patricia A. Row, a portfolio manager at Kennedy Capital Management, a St. Louis money manager that owns about 195,000 shares, or 1.1 percent of the total.

Loyola officials could not be reached for comment.

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