Market Overview

UPDATE: J.P. Morgan Reiterates Overweight Rating, Lowers PT on City National Corp.

Related CYN
City National Announces Preliminary Results of Stockholder Election for Merger Consideration With RBC
RBC Receives Fed Approval for City National Corp. Acquisition

In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on City National Corp. (NYSE: CYN), but slightly lowered its price target from $58.00 to $57.00.

J.P. Morgan noted, “While the market is focused on loan growth, CYN continues to deliver at rates above its peers. In the most recent quarter, the company delivered 22% annualized growth in average loans and 24% annualized growth in period-end loans, with 36% annualized growth in period-end C&I loans benefitting from the First American transaction which closed in the quarter. On an organic basis, period-end loan growth was also strong at 14% annualized (ahead of peers at 5% annualized). The bank is well positioned to deliver above-peer loan growth given (1) one of the higher concentrations of C&I loans in the industry at 45%, (2) exposure to economically resilient industries such as entertainment, (3) CYN being one of the few banks growing CRE loans (rather than needing to reduce concentration risk) with only 18% of balances in CRE, and (4) a continuation of growth from new hires over the past year and investment in the franchise.”

City National Corp. closed on Friday at $52.33.

Latest Ratings for CYN

Sep 2015DA DavidsonMaintainsNeutral
Mar 2015Keefe Bruyette & WoodsMaintainsMarket Perform
Feb 2015Keefe Bruyette & WoodsMaintainsMarket Perform

View More Analyst Ratings for CYN
View the Latest Analyst Ratings

Posted-In: J.P. Morgan & Co.Analyst Color Price Target Analyst Ratings


Related Articles (CYN)

View Comments and Join the Discussion!