Stephens Upgrades Umpqua Holdings (UMPQ) to Overweight

Stephens analyst Tyler Stafford upgraded Umpqua Holdings (NASDAQ: UMPQ) from Equal Weight to Overweight with a price target of $21.00 (from $16.00).

The analyst comments "We’re upgrading UMPQ to Overweight from Equal-Weight as we believe an incremental Phase 3 efficiency focus will drive upside to Consensus estimates and position UMPQ in a select group of banks to see ROA/ROTCE expansion through 2020/2021. UMPQ has underperformed the KRE by -14%, -11%, and -39% on a 1-, 3-, and 5-year basis, respectively, but given 2020 marks the precipice for its NextGen operational excellence initiative and carries associated financial incentives, we believe the year should see better execution and result in a turning point of the stock’s performance and discounted valuation. In this report, we provide a scorecard on NextGen's preliminary results, review the success of its NextGen expense initiatives, track the achieved revenue synergies, as well as detail where we see upside to Street estimates in 2020/2021."

For an analyst ratings summary and ratings history on Umpqua Holdings click here. For more ratings news on Umpqua Holdings click here.

Shares of Umpqua Holdings closed at $17.70 yesterday.

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