UPDATE: Stephens Starts Customers Bancorp (CUBI) at Equal Weight

Stephens analyst Matt Breese initiates coverage on Customers Bancorp (NYSE: CUBI) with a Equal Weight rating and a price target of $62.50.

The analyst comments "We are initiating coverage on Customers Bancorp, Inc. with an EqualWeight rating and $62.50 price target. Our P/T is based on 10x 2023 EPS and ~165%-170% P/TBV, slightly below similarly profitable peers. Overall, we are impressed by the changes that have taken place over the last 2-3 years at CUBI, consisting of a drastic improvement to the funding base through the blockchain-enabled, real time payments platform launch, accelerated TBV growth on the back of above-average PPP market-share capture, lower CRE concentrations, and a stronger profitability outlook with the expiration of the BMTX service agreement. That said, in the near-term, we have reservations about the company's $1.7 billion consumer installment portfolio and the more pronounced inflationary environment we find ourselves in - expected to impact lowend consumers most acutely. As a result, we recommend a wait-andsee approach until the consumer credit outlook is on firmer ground."

For an analyst ratings summary and ratings history on Customers Bancorp click here. For more ratings news on Customers Bancorp click here.

Shares of Customers Bancorp closed at $54.71 yesterday.

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