In 2011, TCF Financial Corp. acquired Gateway One of Anaheim, Calif., to expand in used-car loans and diversify its lending business. Wayzata-based TCF's auto-lending portfolio has grown to 9 percent of its total loans (or $1.5 billion), as of the second quarter. In its focus on used-car loans, TCF now has 732 employees operating in 50 states working through 9,400 dealers.
Sterne Agee analyst Terry McEvoy wrote positively about trends in the industry and reports that TCF management expects its auto financing business to grow to 20 percent of loans. "We see auto-lending levels still below historical norms by many metrics, and expect it to continue to be a source of growth for TCF," wrote McEvoy.
McEvoy, along with six other analysts, has a "buy" rating on TCF. Nine analysts have TCF at "hold" and three have "sell" recommendations.
Expecting growth at Proto Labs
Canaccord Genuity analyst Bobby Burleson upgraded his recommendation on Proto Labs Inc. from "hold" to "buy" on Oct. 2.
The Maple Plain-based maker of quick-turn custom parts for prototyping is often lumped together with 3-D printing companies, even though Proto Labs does not sell printers.
Burleson upgraded Proto Labs mainly on weakness in the overall additive manufacturing industry that includes Stratasys, 3-D Systems and others. "We see recent weakness as a buying opportunity given strong fundamentals with a less volatile business model compared to peers," he wrote.
"We continue to expect Proto Labs to deliver 25 percent growth over the next three to five years, driven by an expanding product portfolio and growing overseas presence," Burleson added.
Patrick Kennedy
