Keefe, Bruyette & Woods Maintains On Sterling Bancorp After Meeting With CEO

In a report released Friday morning, research firm Keefe, Bruyette & Woods reiterated its Outperform rating and $15.50 target price on Sterling Bancorp (NYSE: STL) after meeting with its CEO Jack Kopnisky.

The encounter reaffirmed the firm's confidence in the company, the report assured, and left analysts Collyn Gilbert and Travis Lan believing that the company’s "operating model (pro forma with Hudson Valley) can be scalable, can continue to create positive operating leverage, and overall, the company's momentum is solid."

Some other takeaways from the meeting include:

1) Positive operating leverage is the core foundation of management's focus;

2) Sterling's business model has been structured such that double-digit EPS growth can be sustained without acquisitions;

3) The HVB acquisition is moving along well, and cost saves could end up being even more than projected;

4) Sterling is comfortable crossing the $10 billion asset threshold; and

5) Further acquisitions are fairly unlikely--no intention of being a "serial acquirer.”

The analysts pointed out that Sterling Bancorp’s financial targets remain “on track and unchanged,” and highlighted the stock as a top pick going into 2015.