Nomura Securities Maintains a 'Neutral' on City National (CYN); Management Meetings Post 2Q

Nomura Securities maintains a 'Neutral' on City National (NYSE: CYN).

Nomura analyst, Brian Foran, said, "City National targets a normalized ROA of 1.25%, but realistically core earnings can only get halfway there with rates at zero. Low rates are about a $2.50 EPS drag for City National via the combination of a depressed core net interest margin, money market fee waivers and weak fixed income brokerage. The challenge is building an earnings bridge to higher rates through a combination of loan growth, a little duration extension, cost cutting and M&A. The recent sell-off creates value in our view. Still, with rates at zero seemingly forever, normal earnings are a long way away."

For more ratings news on City National click here and for the rating history of City National click here.

Shares of City National closed at $42.01 yesterday.

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