Market Overview

UPDATE: Credit Suisse Initiates PrivateBancorp with Neutral on Valuation

Related PVTB
Index Shuffling: PrivateBancorp To Join S&P MidCap 400, Cogent Communications To Join S&P SmallCap 600
Benzinga's Top Upgrades

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

Apr 2016DA DavidsonInitiates Coverage onNeutral
Mar 2016Fig PartnersDowngradesOutperformMarket Perform
Feb 2016SunTrust Robinson HumphreyUpgradesNeutralBuy

View More Analyst Ratings for PVTB
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Initiation Analyst Ratings


Related Articles (PVTB)

View Comments and Join the Discussion!