J.P. Morgan Reiterates Neutral Rating on PrivateBancorp (PVTB)

J.P. Morgan is out with a research report this morning, where it reiterates its Neutral rating on PrivateBancorp (NASDAQ: PVTB); it also increased its price target to $13.50, from $12.50. The JPM analysts cited the company’s most recent earnings report, which was substantially better than J.P. Morgan’s and the Street consensus estimates. The earnings beat came from provision expense reported nearly $17 million below forecast and declining 37% Q/Q as well as PTPP income trends coming in stronger than expected. While 2Q trends were “very encouraging” and a major step in the right direction for the bank, at this point J.P. Morgan analysts think its questionable as to “whether the improvement seen in Q2 is sustainable in coming quarters given that inflows into NPA continued to accelerate in the quarter, the NIM is being held up by accretion that will erode over time, and it will be tough to replicate this level of fee revenues going forward.”Although the risk profile improved at the company with Q2 results, the JPM analysts think that the 14% pop in the stock has fully priced in such an improvement. While they are raising EPS estimates and taking the price target to $13.50, they are still maintaining the Neutral rating.