In a report released today, Michael Diana from Maxim Group reiterated a Buy rating on First Republic Bank (NYSE: FRC), with a price target of $110. The company’s shares opened today at $93.20.
Diana observed:
“3Q18 results included very strong growth in loans and wealth management assets, a stable NIM, and excellent credit quality. We are introducing a 2019 EPS estimate of $5.50, based on 15.6% loan growth, a NIM of 2.88%, loan loss provisioning of 0.10% of average loans, an efficiency ratio of 63%, and an effective tax rate of 19%. See page 2 for our updated earnings model. We are reiterating our price target of $110. Our price target equates to 20.0x our new 2019 EPS estimate, inline with other best-in-class smid-cap banks before the very recent selloff. In our view, best-in-class smid-cap banks will recover their pre-selloff valuations.”
According to TipRanks.com, Diana is a 4-star analyst with an average return of 5.1% and a 55.4% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for First Republic Bank with a $102.86 average price target.
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The company has a one-year high of $106.75 and a one-year low of $84.56. Currently, First Republic Bank has an average volume of 964.4K.
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First Republic Bank engages in the provision of private banking, business banking, and wealth management, including investment, trust and brokerage services through its subsidiaries. Its services includes checking, savings, money market, online and mobile banking, automated teller machine (ATM) card and ATM/debit card, student loan refinancing, residential and personal lending, foreign exchange, business lending by industry, general business loans, commercial real estate and construction loans, business lines of credit, corporate online, treasury services, endowment management, and financial planning. It operates through two segments: Commercial Banking and Wealth Management. The Commercial Banking segment engages in attracting funds from the general public, originating loans and investing in investment securities. The Wealth Management segment engages in mutual fund activities. The company was founded by James H. Herbert II in February 1985 and is headquartered in San Francisco, CA.
