UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on City National Corp.
In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on City National Corp. (NYSE: CYN), but slightly lowered its price target from $58.00 to $57.00.
J.P. Morgan noted, “While the market is focused on loan growth, CYN continues to deliver at rates above its peers. In the most recent quarter, the company delivered 22% annualized growth in average loans and 24% annualized growth in period-end loans, with 36% annualized growth in period-end C&I loans benefitting from the First American transaction which closed in the quarter. On an organic basis, period-end loan growth was also strong at 14% annualized (ahead of peers at 5% annualized). The bank is well positioned to deliver above-peer loan growth given (1) one of the higher concentrations of C&I loans in the industry at 45%, (2) exposure to economically resilient industries such as entertainment, (3) CYN being one of the few banks growing CRE loans (rather than needing to reduce concentration risk) with only 18% of balances in CRE, and (4) a continuation of growth from new hires over the past year and investment in the franchise.”
City National Corp. closed on Friday at $52.33.
Latest Ratings for CYN
|Jan 2015||Sandler O'Neill||Downgrades||Buy||Hold|
|Jan 2015||Raymond James||Downgrades||Outperform||Market Perform|
|Jan 2015||Maxim Group||Downgrades||Buy||Hold|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.