Market Overview

UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on City National Corp.

Related CYN
UPDATE: Bank Of America Downgrades City National Amid 'Slowing Near-Term Trends'
First Republic Misses Earnings as Expenses Rise, Shares Fall

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

DateFirmActionFromTo
Jul 2014Bank of AmericaDowngradesNeutralUnderperform
Jul 2014SunTrust Robinson HumphreyMaintainsNeutral
Jul 2014JefferiesMaintainsHold

View More Analyst Ratings for CYN
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Price Target Analyst Ratings

 

Related Articles (CYN)

Around the Web, We're Loving...

Get Benzinga's Newsletters