After Stephens and Merrill Lynch gave Svb Financial Group (NASDAQ: SIVB) a Buy rating last month, the company received another Buy, this time from Maxim Group. Analyst Michael Diana reiterated a Buy rating on Svb Financial Group today and set a price target of $325. The company’s shares closed on Friday at $247.63.
Diana wrote:
“SIVB produced its seventh consecutive blowout quarter with EPS beating consensus by 14%. However, SIVB is more asset-sensitive than any other bank, so its earnings should not grow as fast with the Fed on hold. SIVB is also more unique than any other bank, in our view (see below), and therefore should be able to outperform even in an interest rate environment that is less favorable for it. We are lowering our price target to $325, from $365, which equates to 14.1x our new 2020 EPS estimate of $23 (versus a 2019 P/E multiple of 17.4x for our previous price target): this is inline with other best-in-class smid-cap banks. SIVB remains our top pick among Smid-Cap banks over the long term.”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 6.2% and a 60.9% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.
Currently, the analyst consensus on Svb Financial Group is a Moderate Buy with an average price target of $274.89, representing an 11.0% upside. In a report issued on April 26, Stephens also assigned a Buy rating to the stock with a $290 price target.
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Svb Financial Group’s market cap is currently $13.02B and has a P/E ratio of 13.67. The company has a Price to Book ratio of 2.55.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is negative on the stock. Last month, John China, the Head of Technology Banking of SIVB sold 11,200 shares for a total of $2,790,032.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
SVB Financial Group is a financial, and bank holding company, which engages in the provision of banking, and financial products and services. It operates through the following segments: Global Commercial Bank, SVB Private Bank, and SVB Capital.
