Barclays Positive on M&T Bank's (MTB) Acquisition; Banking Consolidation a Secular Trend
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Price: $104.71 +0.43%
Rating Summary:
9 Buy, 7 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
9 Buy, 7 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
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Barclays maintains an 'Equalweight' on M&T Bank (NYSE: MTB) price target of $100.00 (from $95.00).
Analyst, Jason M. Goldberg, views the company's acquisition of Hudson City (Nasdaq: HCBK) as a positive, citing the improved position in NY and NJ (NY market share from 22nd to 9th; 4th in NJ). Goldberg noted that MTB has a long history of acquiring troubled/thirft banks with success.
Also, the Barclays analyst had an angle on banking consolidation as a secular trend, saying, "In HCBK's case we believe CEO age and interest rate risk were factors. In addition to recently publicized health issues, HCBK's CEO is also 64 years old. Looking at banks with between $5bn and $75bn in assets shows Valley National Bancorp (NYSE: VLY), BancorpSouth (NYSE: BXS), TCF (NYSE: TCB), Texas Capital (Nasdaq: TCBI), First Republic (NYSE: FRC), Cullen/Frost (NYSE: CFR) and BankUnited (NYSE: BKU) all have CEOs age 65 or older. Also, in early March, HCBK received an MOU. Synovus (NYSE: SNV) also has one. CRBC is expected to complete its strategic review post Labor Day. Still, while deal values averaged 2.3x tangible book from 2004-2007, YTD it is closer to 1.0x."
For an analyst ratings summary and ratings history on M&T Bank click here. For more ratings news on M&T Bank click here.
Shares of M&T Bank closed at $89.82 yesterday, with a 52 week range of $66.40-$90.50.
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Analyst, Jason M. Goldberg, views the company's acquisition of Hudson City (Nasdaq: HCBK) as a positive, citing the improved position in NY and NJ (NY market share from 22nd to 9th; 4th in NJ). Goldberg noted that MTB has a long history of acquiring troubled/thirft banks with success.
Also, the Barclays analyst had an angle on banking consolidation as a secular trend, saying, "In HCBK's case we believe CEO age and interest rate risk were factors. In addition to recently publicized health issues, HCBK's CEO is also 64 years old. Looking at banks with between $5bn and $75bn in assets shows Valley National Bancorp (NYSE: VLY), BancorpSouth (NYSE: BXS), TCF (NYSE: TCB), Texas Capital (Nasdaq: TCBI), First Republic (NYSE: FRC), Cullen/Frost (NYSE: CFR) and BankUnited (NYSE: BKU) all have CEOs age 65 or older. Also, in early March, HCBK received an MOU. Synovus (NYSE: SNV) also has one. CRBC is expected to complete its strategic review post Labor Day. Still, while deal values averaged 2.3x tangible book from 2004-2007, YTD it is closer to 1.0x."
For an analyst ratings summary and ratings history on M&T Bank click here. For more ratings news on M&T Bank click here.
Shares of M&T Bank closed at $89.82 yesterday, with a 52 week range of $66.40-$90.50.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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