UPDATE: Stifel Nicolaus Initiates Hold Heritage Commerce; Valuation Full
Stifel Nicolaus initiates its coverage on Heritage Commerce (NASDAQ: HTBK) with a Hold rating on shares.
Stifel Nicolaus notes, "HTBK shares trade at the highest P/E multiple in our West Banks coverage group at 16.8x based on our 2013 EPS estimate compared to the peer average of 12.3x. However, the shares trade at a discount on a tangible book basis compared to the peer average of 1.4x. With a limited number of banks with assets greater than $1 billion in assets in the San Francisco Bay Area, the tangible book multiple is a more important factor in consideration in our valuation of the shares. Our fair value for the shares is $6.50, and we are initiating coverage with a Hold rating."
HTBK closed at $6.06 on Thursday.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.