UPDATE: Stephens Resumes Signature Bank (SBNY) at Overweight

(updated comment)

Stephens analyst Matt Breese resumes coverage on Signature Bank (NASDAQ: SBNY) with a Overweight rating and a price target of $140.00.

The analyst comments "We think SBNY is in a solid position to outperform over the next year as we expect a margin inflection point in early 2020, strong C&I growth and solid profitability with a 1.15% ROA and 12% ROTCE. Given the stock is trading at 10.5x earnings and ~135% P/TBV, we do not think these positives are reflected in the valuation especially as similarly profitable peers are trading at a 11.5x-12.0x earnings and ~160% P/TBV. With what we think are sizable discrepancies between the fundamental outlook and valuation, we are resuming coverage with an Overweight rating and $140 P/T."

For an analyst ratings summary and ratings history on Signature Bank click here. For more ratings news on Signature Bank click here.

Shares of Signature Bank closed at $121.57 yesterday.

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