UPDATE: DA Davidson Starts United Bankshares Inc. (UBSI) at Neutral

(updated to include analyst comments)

DA Davidson initiates coverage on United Bankshares Inc. (NASDAQ: UBSI) with a Neutral rating and a price target of $45.00.

Analyst Russell Gunther comments "Coupling solid organic growth and efficiency outperformance with market expansion via M&A into higher growth markets has contributed to a return profile on ROAA and ROATCE consistently and meaningfully ahead of both Mid-Atlantic and regional peers. Profitability outperformance has now manifested in valuation with UBSI having erased its historical P/E discount, trading at a deserved premium given above-peer profitability. Premium valuation persists despite having underperformed MA peers during the financials-led post-election rally by 7%, and more meaningfully post CFNL deal announcement by 16%. We believe the valuation premium in line with its post-crisis historical premium appropriately captures an above-peer return profile and earnings growth catalysts that are non-interest rate, tax reform, or anticipated GDP improvement from potential government action related, in the form of its pending CFNL deal. Trading 20.5x 2018E and 19.9x discounted 2019E, we view current valuation as full, but fair."

For an analyst ratings summary and ratings history on United Bankshares Inc. click here. For more ratings news on United Bankshares Inc. click here.

Shares of United Bankshares Inc. closed at $45.05 yesterday.

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