FBR Capital Starts National Commerce (NCOM) at Market Perform

FBR Capital initiates coverage on National Commerce (NASDAQ: NCOM) with a Market Perform rating and a price target of $27.00.

Analyst Christopher Nolan commented, "We are initiating coverage of National Commerce Corporation (NCOM) with a Market Perform rating and a 12-month price target of $27 per share. This Birmingham, Alabama–based commercial bank, mortgage banking, and factoring business operates primarily in Alabama and North and Central Florida. While asset quality has been good, equity returns have trailed peer averages, in part reflecting a comparatively higher operating efficiency ratio and an under-loaned balance sheet. Despite this, NCOM shares have outperformed peers since they began trading on March 19, 2015, and currently trade at a relative premium on a price/tangible book value multiple basis. Going forward, we believe NCOM shares are fairly valued given the absence of a visible upside earnings catalyst and our outlook for modest ROATCE improvement in 2016."

For an analyst ratings summary and ratings history on National Commerce click here. For more ratings news on National Commerce click here.

Shares of National Commerce closed at $22.80 yesterday.

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