Boenning & Scattergood analyst Matthew Schultheis maintained a Buy rating on Cnb Financial Corp (CCNE) today and set a price target of $31. The company’s shares closed yesterday at $28.07.
Schultheis commented:
“We view an investment in CCNE shares as a compelling purchase. We believe the move back to a build versus a buy model is likely to yield a higher return in invested capital than acquisitions. By sticking to a tried-and-true strategy with a history of positive execution, we suspect growth will smooth out from recent lumpiness. The shares trade at a discount to peers on a P/E basis (11.1x vs. 12.3x), but at a premium on tangible book (1.9x vs. 1.7x); we believe the split is caused by CNB’s relative capital position, but that P/E can expand as capital builds organically through an ROA in the 1.10%-1.20% range through the modeling period. Investors can achieve a 2.4% capitalized dividend yield at current share price levels while they wait for earnings acceleration. Our $31.00 target price is based on a blend of peer multiples and a discount acquisition analysis.”
According to TipRanks.com, Schultheis is a 4-star analyst with an average return of 4.7% and a 58.1% success rate. Schultheis covers the Financial sector, focusing on stocks such as Orrstown Financial Services Inc, Citizens Financial Services Inc, and Fulton Financial Corp.
Currently, the analyst consensus on Cnb Financial Corp is a Moderate Buy with an average price target of $31.
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The company has a one-year high of $32.86 and a one-year low of $21.43. Currently, Cnb Financial Corp has an average volume of 18.69K.
Based on the recent corporate insider activity of 34 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 CCNE in relation to earlier this year.
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CNB Financial Corp. (Pennsylvania) is a financial holding company, which through its subsidiaries engages in the provision of banking and financial solutions. It operates through Reviewed and Homogeneous Pool segments. The Reviewed Pool segment include commercial, industrial, and agricultural; and commercial mortgages.
