UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Raises PT on PrivateBancorp
In a report published Monday, BMO Capital Markets reiterated its Market Perform rating on PrivateBancorp (NASDAQ: PVTB), and slightly raised its price target from $15.00 to $16.00.
BMO Capital noted, “TARP redemption removes a key overhang for PVTB. Our estimates assumed PVTB would redeem TARP at the end of 1Q13 without a common equity raise. The equity offering increases the share count by nearly 7%, and we estimate the debt issuance will be a modest drag on the net interest margin. However, in our view, these negatives are more than offset by a much lower provision expense outlook, better fee income, and a lower expected tax rate in 2013. The common equity offering boosts the Tier 1 Common capital ratio by about 60 bp to 8.7%, but this is still much lower than the 11.6% median for its Midwest peers.”
PrivateBancorp closed on Friday at $16.90.
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