In a report released today, Matthew Schultheis from Boenning & Scattergood maintained a Buy rating on Cnb Financial Corp (NASDAQ: CCNE). The company’s shares closed on Friday at $27.01.
Schultheis wrote:
“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 on invested capital than acquisitions will. By sticking to a tried-and-true strategy with a history of positive execution, we suspect growth will smooth from recent lumpiness. The shares trade at a discount to peers on a 2019 P/E basis (10.9x [B&S] vs. 11.7x), 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 book value builds at an 11.5% CAGR from 2017 through 2020. Investors can achieve a 2.5% capitalized dividend yield at current share price levels while they wait for earnings acceleration. Our $32.00 target price is based on a blend of peer multiples and a discount acquisition analysis.”
According to TipRanks.com, Schultheis is a 3-star analyst with an average return of 3.7% and a 51.5% success rate. Schultheis covers the Financial sector, focusing on stocks such as Orrstown Financial Services Inc, Citizens Financial Services Inc, and Fulton Financial Corp.
Cnb Financial Corp has an analyst consensus of Moderate Buy.
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Based on Cnb Financial Corp’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $9.24 million. In comparison, last year the company had a net profit of $7.21 million.
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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.
