Sterne Agee Still Sees Loan Growth As Challenge For Northwest Bancshares

In a report published Tuesday, Sterne Agee analyst Matthew Breese reiterated a Neutral rating on
Northwest Bancshares
. In the report, Sterne Agee noted, “NWBI reported 2Q14 EPS of $0.14, a penny below our estimates and down $0.02 from the year-ago period. Earnings this quarter were impacted by a large $8.3 million provision that, after conversations with management, appeared isolated. In our view, shares of NWBI are fairly valued at 138% of TBV given that forward profitability metrics are below that of peers. Looking ahead, we believe the company will seek out whole bank acquisitions in its core markets of western PA and upstate NY.” Northwest Bancshares closed on Monday at $13.01.

Posted In: Matthew BreeseSterne AgeeAnalyst ColorReiterationAnalyst Ratings