UPDATE: UBS Upgrades BankUnited (BKU) to Buy
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UBS analyst Brock Vandervliet upgraded BankUnited (NYSE: BKU) from Neutral to Buy with a price target of $22.00 (from $16.00).
The analyst comments "BKU looks more insulated with only ~15% COVID-19-sensitive exposure in total and less credit stress than initially feared from QSR franchises and Florida-based leisure class hotels. Additionally, BKU should generate NIM expansion through 2020. This is highly unusual with most bank NIMs headed lower over this period. Here it is driven by consistent repricing of high cost deposits. Finally, an 11.8% CET1 ratio, permits large scale share repurchase. In our view these catalysts are not well understood by investors and BKU trades at a 2 turn discount to the sector on 2021E EPS and just 0.7x TBV versus 1.1x for the sector."
Shares of BankUnited closed at $18.11 yesterday.
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