Maxim Group analyst Michael Diana reiterated a Buy rating on Customers Bancorp (CUBI) today and set a price target of $38. The company’s shares closed yesterday at $20.70.
Diana said:
“4Q18 results reflected the early stages of the execution of CUBI’s strategy: 1) shrink to under $10 billion in assets (accomplished in 4Q18) so as to preserve its Durbin Amendment advantage on interchange revenue, and stay under $10 billion for as long as it owns BankMobile; 2) transition the Community Business Banking segment’s balance sheet to more C&I and consumer loans, fewer multi-family and non-owner-occupied CRE loans, and more core deposits (all progressed in 4Q18); 3) have the BankMobile segment grow its student business and take advantage of its “white label” partnership with cable giant T-Mobile (TMUS – NR); beta testing on this partnership began in 4Q18 (see below); and 4) divest BankMobile by mid-2021.”
According to TipRanks.com, Diana is a 4-star analyst with an average return of 4.2% and a 56.8% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Westamerica Bancorporation, and Pennantpark Floating Rate.
Currently, the analyst consensus on Customers Bancorp is a Strong Buy with an average price target of $30.50, a 47.3% upside from current levels. In a report released today, Boenning & Scattergood also maintained a Buy rating on the stock.
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The company has a one-year high of $32.34 and a one-year low of $16.72. Currently, Customers Bancorp has an average volume of 282.9K.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock.
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Customers Bancorp, Inc. operates as a bank holding company. The company, through its subsidiary Customers Bank, offers financial products and services to small and middle market businesses, not-for-profits, and consumers through its branches in Southeastern Pennsylvania, New York, New Jersey, Rhode Island, New Hampshire, and Massachusetts.
