After Morgan Stanley and J.P. Morgan gave Signature Bank (NASDAQ: SBNY) a Buy rating last month, the company received another Buy, this time from Maxim Group. Analyst Michael Diana reiterated a Buy rating on Signature Bank yesterday and set a price target of $180. The company’s shares opened today at $122.61.
Diana observed:
“SBNY reported 2Q19 EPS of $2.72, versus consensus of $2.71. We regard the results as strong: the net interest margin (NIM) was stable linked-quarter (per guidance); loan growth was 2.1% (excluding loan sales) and deposit growth was 2.5%, both driven by strategic initiatives; and non-performing assets were down 45%. In our view, the NIM has bottomed out, the negative impact of taxi medallion loans is gone, and the potential negative credit impact of loans on rent-controlled multi-family buildings has not materialized. We are lowering our 2020 EPS estimate to $12.00, from $12.50 based on a lag in NIM expansion and on slower growth in multi-family loans. We are lowering our price target to $180, from $190, based on our new 2020 EPS estimate.”
According to TipRanks.com, Diana is a 5-star analyst with an average return of 7.2% and a 57.8% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.
Signature Bank has an analyst consensus of Moderate Buy, with a price target consensus of $143.20, representing a 16.8% upside. In a report issued on July 8, Raymond James also upgraded the stock to Buy with a $143 price target.
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The company has a one-year high of $137.94 and a one-year low of $98.54. Currently, Signature Bank has an average volume of 435K.
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Signature Bank engages in the provision of commercial bank services. It operates through the Commercial Banking and Specialty Finance business segments. The Commercial Banking segment offers commercial real estate lending, commercial and industrial lending, and commercial deposit gathering activities.
