In a report published Tuesday, Bank of America analyst Erika Penala upgraded the rating on Synovus Financial Corp. SNV from Neutral to Buy, and reiterated the $3.00 price target.
In the report, Penala noted, “Bank stock valuations have re-rated materially as balance sheet strength has improved post-crisis. As such, we think remaining incremental upside could be in banks that are on the path to balance sheet de-risking, but whose progression lags peers. In this context, we find SNV, which trades at a 15% discount to forward TBV of $3, to be a classic ‘re-rate' story. We think there are two potential catalysts for a re-rate of SNV: 1) continued credit improvement; and 2) an exit from TARP, which is likely a 3Q13 event. Our PO remains $3 (15% potential upside), which assumes SNV is fairly valued at 1x forward TBV.”
Synovus Financial Corp. closed on Monday at $2.61.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in