Jefferies Downgrades Boston Private Financial (BPFH) to Hold

November 28, 2016 7:49 AM EST
Get Alerts BPFH Hot Sheet
Price: $16.45 +1.54%

Rating Summary:
    1 Buy, 7 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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Jefferies downgraded Boston Private Financial (NASDAQ: BPFH) from Buy to Hold with a price target of $14.00 (from $15.00) to reflect post-election stock/EPS dynamics.

Analyst Ken Usdin commented, "We move to the sidelines as BPFH has widened its P/E premium to peers on a P/E basis (now a 2.6x premium vs. 1.8x on Nov. 8). We see limited additional upside given a bottom decile asset-sensitivity profile and lack of meaningful exposure to any potential infrastructure spending bill. BPFH's asset-sensitivity is limited by its high loan/deposit ratio, low percentage of earning assets repricing within one year and lower mix of noninterest-bearing deposits relative to earning assets. Furthermore, in the last rate cycle, BPFH had an above-average deposit beta relative to peers, which could keep NIM benefits from rate hikes contained again this cycle. Our price target of $14 implies 17.5x our '18 EPS estimate, or 105% of the current '17 S&P 500 P/E multiple. Upside risks to our downgrade: return to stronger inflows and faster overall wealth management growth, stronger than expected loan growth, longer-than-expected life of credit recoveries."

For an analyst ratings summary and ratings history on Boston Private Financial click here. For more ratings news on Boston Private Financial click here.

Shares of Boston Private Financial closed at $15.55 yesterday.

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