UPDATE: Credit Suisse Initiates PrivateBancorp with Neutral on Valuation
In a report published Thursday, Credit Suisse analyst Matthew Clark initiated coverage on PrivateBancorp (NASDAQ: PVTB) with a Neutral rating and $19.00 price target.
In the report, Clark noted, “PVTB is under-earning but has good visibility to restore returns with higher rates, credit leverage, and further traction in building out its commercial customer base. PVTB's balance sheet remains among the best positioned for higher rates, with 90% of its loans variable rate, including 70% tied to 30-day LIBOR. If rates increased by 100-200 bps, PVTB's EPS could climb by 20-35% to $1.65-1.90 (11-12x). Credit has become less of an issue now that capital has been raised and problem credits are down to 30% of TCE plus reserves. Some credit leverage still exists, with OREO costs weighing on expenses by $0.20 per share, but provisioning has largely stabilized at 39 bps, with general reserves down to 1.18%.”
PrivateBancorp closed on Wednesday at $20.16.
Latest Ratings for PVTB
|Oct 2014||Keefe Bruyette & Woods||Maintains||Outperform|
|Jul 2014||JP Morgan||Maintains||Neutral|
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