Wells Fargo Starts City National (CYN) at Market Perform

Wells Fargo initiates coverage on City National (NYSE: CYN) with a Market Perform and $52-$56 valuation range.

The firm comments, "We believe City National is operating in a position of strength in light of the bank’s market share gains and expanding lending capabilities. Further, the bank’s strong and growing wealth management operation provides a partial offset to the challenging spread revenue environment. But, City National should not be immune to the industrywide problem of margin compression. With slower core earnings growth and shares trading at 1.4x 2013E TBV and 12.8x 2013 core EPS, we believe CYN shares are fairly valued at this time."

The firm's 2013 and 2014 EPS estimates are $3.90 and $4.05, respectively, and sit modestly below consensus. Consensus is at $4.00 for 2013 and $4.14 for 2014.

For an analyst ratings summary and ratings history on City National click here. For more ratings news on City National click here.

Shares of City National closed at $49.35 yesterday.

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