Boenning & Scattergood analyst Erik Zwick initiated coverage with a Hold rating on Lakeland Bancorp (NASDAQ: LBAI) today. The company’s shares closed on Friday at $19.25.
Zwick wrote:
“We attribute the majority of the underperformance to a recently announced revision of the New Jersey corporate tax code that will increase the tax rate beginning in 2019. Looking beyond the tax tissue, we are complimentary of Lakeland’s 1) steady and lower- risk growth strategy, 2) relationship-focused, community banking model, and 3) strong management team. We believe the risk/reward profile is evenly balanced today with shares trading at a slight premium to peers on both a P/E (13.7x 2019E vs. 13.3x) and P/TBV (2.0x vs. 1.9x) basis. Thus, we are initiating coverage of LBAI shares with a Neutral rating.”
According to TipRanks.com, Zwick is a 3-star analyst with an average return of 5.1% and a 56.8% success rate. Zwick covers the Financial sector, focusing on stocks such as Provident Financial Services, Bankwell Financial Group, and Community Bank System.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Lakeland Bancorp with a $22.25 average price target.
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Based on Lakeland Bancorp’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $15.69 million. In comparison, last year the company had a net profit of $13.25 million.
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Lakeland Bancorp, Inc. operates as a bank holding company, which provides services through its wholly-owned subsidiary Lakeland Bank. The bank offers a full range of lending services, including commercial loans and leases, real estate and consumer loans to small and medium-sized businesses, professionals and individuals located in its markets.
