Market Overview

UPDATE: Bank of America Upgrades City National


In a report published Thursday, Bank of America Merrill Lynch analyst Erika Najarian upgraded City National (NYSE: CYN) to Neutral from Underperform, raising its price objective to $80.00 from $52.00.

“We previously had a more cautious outlook on the stock, given what we saw as premium valuation for potential EPS upside when short rates went up and believe it was an expensive “call option” to pay,” the report said. “That said, especially with the yield curve steepening, we think short-rate sensitive names like CYN should continue to trade at a premium multiple on earnings. Considering that, paired with continued, consistent strong loan growth, we no longer believe there is significant risk to market multiples.”

According to the report, shares are trading at 19.4x ‘14E EPS and 2.2x ‘14E TBV - in-line with high growth peers. We are raising our 4Q13 EPS estimates by a penny to $1.05 (from $1.04) and our '14 EPS estimate to $4.05 (from $4.00) and our '15 estimate to $4.30 (from $4.25), primarily on modestly better net interest income due to stronger loan growth.

“CYN continues to be a best-in-class franchise, and offers long-term investors material EPS leverage from a continuing US economic recovery and an eventual rise in short interest rates,” the report said.

CYN closed Wednesday at $77.82.

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


Related Articles (CYN)

View Comments and Join the Discussion!

Posted-In: Bank of America Merrill Lynch Erika NajarianAnalyst Color Upgrades Analyst Ratings

Latest Ratings

DEBMO CapitalMaintains400.0
PRITruist SecuritiesMaintains165.0
SHAKJP MorganMaintains70.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at