Barclays upgraded its rating on Signature Bank SBNY to Overweight while dropping its price target from $150 to $139. This marks Signature's replacement of SVB Financial Group SIVB as the firm's top pick.
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- Keating views concerns around its commercial real estate concentration risk as exaggerated.
- The firm expects Signature's asset, loan and deposit growth to remain "well about average."
- There is potential for Signature's provision and expenses to "favorably surprise."
Keating said he sees Signature's loan growth at 15 percent in 2017 and 13 percent in 2018, while Barclay's median forecast growth is 8 percent and 7 percent respectively.
"We look for SBNY's asset and deposit growth to similarly outperform peers," said Keating.
At time of writing, SVB was up 1.42 percent at $109.01.
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Posted In: Analyst ColorLong IdeasNewsUpgradesPrice TargetAnalyst RatingsMoversTrading IdeasBarclaysMatthew Keating
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