There’s a lot to be optimistic about in the Financial sector as 2 analysts just weighed in on Sterling Bancorp (STL) and Colony Capital Inc (CLNY) with bullish sentiments.
Sterling Bancorp (STL)
In a report released today, Steve Moss from B.Riley FBR reiterated a Buy rating on Sterling Bancorp, with a price target of $26. The company’s shares closed yesterday at $21.37.
Moss wrote:
“We reiterate our Buy rating as Sterling (STL, $26 PT) reported solid 2Q19 results and increased its loan growth guidance for 2019. We believe the improved loan growth guidance is reflective of both the strength of the market opportunity provided by the New York metro market and STL’s deliberate efforts over the years to build a well-run commercial franchise. While purchase accounting accretion was elevated for the June 2019 quarter, we expect the decline in accretion in future periods will result in better financial visibility and higher quality EPS. Our Buy rating reflects STL’s attractive franchise, strong growth prospects as accretion runs-off, and attractive valuation at 9.3x our 2020 estimate of $2.30 and at 9.9x our ex-accretion estimate of $2.16. This is a discount to peers, which trade at 11.2x 2020 estimates, on average.”
According to TipRanks.com, Moss is a 2-star analyst with an average return of 0.3% and a 48.2% success rate. Moss covers the Financial sector, focusing on stocks such as Zions Bancorporation National Association, Seacoast Banking Corporation Of Florida, and Bridgewater Bancshares Inc.
Sterling Bancorp has an analyst consensus of Moderate Buy, with a price target consensus of $25.50, a 19.3% upside from current levels. In a report issued on July 11, D.A. Davidson also initiated coverage with a Buy rating on the stock with a $25 price target.
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Colony Capital Inc (CLNY)
In a report released yesterday, Randy Binner from B.Riley FBR reiterated a Buy rating on Colony Capital Inc, with a price target of $8. The company’s shares closed yesterday at $5.41.
Binner observed:
“2019, CLNY (Buy – $8 PT) announced that it is acquiring a cash and stock deal. The two firms had previously collaborated through Digital Colony Partners. Colony also announced that following the close of the deal, Marc Ganzi, the co-founder and chairman of Digital Bridge, will succeed Tom Barrack as CLNY’s CEO by 2021 while Mr. Barrack remains as chairman. We see this update as consistent with our overall thesis that CNLY is moving toward an investment manager model and that asset sales should unlock value and allow shares to trade closer to NAV. A more focused total return company would likely garner a higher multiple, in our view, and we continue to see significant intrinsic value in CLNY’s balance sheet.”
According to TipRanks.com, Binner is a 5-star analyst with an average return of 13.3% and a 68.1% success rate. Binner covers the Financial sector, focusing on stocks such as American Equity Investment Life, Colony Credit Real Estate Inc, and Health Insurance Innovations.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Colony Capital Inc with a $8 average price target.
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