SHBI Upgraded On Recent Pullback
Analysts at Sanders O'Neill Partners upgrade Shore Bancshares Inc (NYSE: SHBI) from "hold" to "buy."
According to Sanders O'Neill Partners. Shore Bancshares’ stock has declined 18% since last week’s announcement of a reduction in common dividend. “Considering SHBI's discounted valuation and strong capital levels, we believe the shares represent a compelling risk/reward opportunity for investors seeking small cap bank exposure,” the analysts say.
“SHBI has already repurchased its TARP preferred shares, and we believe this leaves little risk for a near-term dilutive equity offering… Furthermore, we note that a sub-tangible book valuation also reduces the potential downside should credit deterioration be more severe than we currently expect,” the analysts add.
