UPDATE: ISI Group Initiates Coverage on Synovus Financial as Low Returns Limit Upside
In a report published Tuesday, ISI Group analyst Keith Murray initiated coverage on Synovus Financial Corp. (NYSE: SNV) with a Neutral rating and $3.50 price target.
In the report, ISI Group noted, “We are initiating coverage of Synovus with a Neutral rating and 12-month price target of $3.50. We think Synovus has made a very meaningful amount of progress over the past 12 months as it repaid TARP, saw two MOUs lifted, cut expenses, and recaptured $800mm of deferred tax assets. All of this progress was not missed by the market, however, and shares of SNV were the top performing regional bank stock in 2012 and are also near the top of the pack so far this year. In our view, for the stock to get another meaningful lift Synovus will have to show a clear path to more stable PPNR and lay out how it gets to a 1% ROA in the future. At this point in time, management seems a little reticent to lay out a clear plan so investors may have to wait a little while. While we don't see much downside in the shares given that SNV is a potential seller in an M&A transaction some day (attractive southeast footprint), we see limited upside in the stock over the next 12 months.”
Synovus Financial Corp. closed on Monday at $3.24.
Latest Ratings for SNV
|Jul 2014||JP Morgan||Maintains||Neutral|
|Jun 2014||Raymond James||Upgrades||Market Perform||Outperform|
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