SIVB To Achieve Robust LT Growth
Analyst Michael Diana of Cantor Fitzgerald maintains his "buy" rating on SVB Financial Group (NASDAQ: SIVB). The target price for SIVB is set to $55.
SVB Financial set forth a compelling story of long term growth during its Analyst Day meeting last week. The analyst believes that SIVB’s long term growth would be healthy due to its expanding market share, interest rate hikes and increased penetration of global VC/technology/life sciences banking markets.
The issues related to SIVB’s high costs are short term in nature and the company will be able to reduce costs significantly from 2011 onwards, the analyst believes. “In order to attract and retain high-quality employees, management believes that it cannot cut bonuses severely due to extended low interest rates alone,” Cantor Fitzgerald adds.
