Wells Fargo Starts SVB Financial (SIVB) at Market Perform; Loan Growth Shackled By Low Rates
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Price: $106.04 --0%
Rating Summary:
11 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo initiates coverage on SVB Financial (NASDAQ: SIVB) with a Market Perform. PT range $52-$54.00.
Wells analyst says, "While SVB continues to generate loan growth well above peers' and has excellent credit quality at present, we opt to remain on the sidelines for now, as the bank’s returns are suppressed by low interest rates."
"We view the balance sheet as a tightly wound spring that is poised to uncoil as rates rise. Once expectations set in for rising rates, we expect SVB to outperform, due to the bank’s highly assetsensitive nature. Loans are primarily floating rate, which presents immediate repricing. Further, roughly 70% of deposits are non-interest bearing, so the funding differential will likely be more pronounced in a period of higher rates."
For an analyst ratings summary and ratings history on SVB Financial click here. For more ratings news on SVB Financial click here.
Shares of SVB Financial closed at $55.26 yesterday.
Wells analyst says, "While SVB continues to generate loan growth well above peers' and has excellent credit quality at present, we opt to remain on the sidelines for now, as the bank’s returns are suppressed by low interest rates."
"We view the balance sheet as a tightly wound spring that is poised to uncoil as rates rise. Once expectations set in for rising rates, we expect SVB to outperform, due to the bank’s highly assetsensitive nature. Loans are primarily floating rate, which presents immediate repricing. Further, roughly 70% of deposits are non-interest bearing, so the funding differential will likely be more pronounced in a period of higher rates."
For an analyst ratings summary and ratings history on SVB Financial click here. For more ratings news on SVB Financial click here.
Shares of SVB Financial closed at $55.26 yesterday.
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