Boenning & Scattergood analyst Matthew Schultheis initiated coverage with a Buy rating on Bankwell Financial Group (NASDAQ: BWFG) today and set a price target of $36.50. The company’s shares closed yesterday at $32.13.
Schultheis observed:
“We attribute the underperformance to 1) slower loan growth, 2) C&I loan impairments, and 3) disclosure of an internal reporting issue. Looking forward, however, we expect a rebound in loan growth and the other noted items to move to the rearview as the company works to resolve them. Combining this belief with Bankwell’s growing scarcity value, we believe the risk/reward profile is attractive currently, with shares trading at a discount to peers on both a P/E (14.1x 2018e vs. 14.4x) and P/TBV (1.5x vs. 1.9x) basis. Thus, we are initiating coverage of BWFG shares with an Outperform rating and $36.50 price target, and believe shares would be most attractive to small-cap and GARP-style investors.”
According to TipRanks.com, Schultheis is a 4-star analyst with an average return of 10.5% and a 82.8% success rate. Schultheis covers the Financial sector, focusing on stocks such as Orrstown Financial Services Inc, Citizens Financial Services Inc, and Provident Financial Services.
Currently, the analyst consensus on Bankwell Financial Group is a Moderate Buy with an average price target of $34.67.
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The company has a one-year high of $37.95 and a one-year low of $30.11. Currently, Bankwell Financial Group has an average volume of 13.03K.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BWFG in relation to earlier this year.
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Bankwell Financial Group, Inc. is a bank holding company, which engages in the provision of financial services through its banking subsidiary, Bankwell Bank. The company offers personal banking solutions comprise checking accounts; online and mobile banking, and bill pay services; savings and money market accounts, and certificates of deposits; and personal loans. It also provides business banking solutions, including business checking accounts; cash management services; online banking and bill pay services; remote deposit capture services; business savings products, business money market accounts, and business certificates of deposit; and commercial loans and mortgages. The company was founded in 2007 and is headquartered in New Canaan, CT.
