Market Overview

UPDATE: Hilliard Lyons Upgrades Republic Bancorp On Discounted Valuation

Share:

In a report published Thursday, Hilliard Lyons analyst Andrew W. Stapp upgraded the rating on Republic Bancorp, Inc. KY (NASDAQ: RBCAA) from Neutral to Long-Term Buy, and raised the price target from $25.00 to $25.50.

In the report, Hilliard Lyons noted, “RBCAA's closing price plummeted 4.0% yesterday on no news. With this decline, our price target suggests a potential return of 13.7%, including dividends, which is a meaningful premium relative to the 10-year Treasury yield of 1.8%. We further note that the stock offers a highly attractive dividend yield of 3.2%, which is substantially higher than the yield for the S&P 500 of 2.0%. Based on the foregoing, we are raising our rating to Long-term Buy from Neutral. In establishing our rating upgrade, we have taken into consideration that there are greater uncertainties regarding RBCAA's future profitability relative to the sector given changes in its business model after exiting payday and tax refund lending. These uncertainties may exert downward pressure on RBCAA's share price for some time to come and therefore present risks that our price target may not be achieved.”

Republic Bancorp closed on Wednesday at $23.03.

Latest Ratings for RBCAA

DateFirmActionFromTo
Jan 2015Hilliard LyonsUpgradesLong-Term Buy
Sep 2012Hilliard LyonsDowngradesBuyNeutral
May 2012Hilliard LyonsUpgradesNeutralBuy

View More Analyst Ratings for RBCAA
View the Latest Analyst Ratings

 

Related Articles (RBCAA)

View Comments and Join the Discussion!

Posted-In: Andrew W. Stapp Hilliard LyonsAnalyst Color Upgrades Analyst Ratings

Latest Ratings

StockFirmActionPT
HYMCBMO CapitalInitiates Coverage On
DEMorgan StanleyMaintains335.0
SBNYRaymond JamesMaintains138.0
CORTHC Wainwright & Co.Maintains32.0
CYBBFCitigroupDowngrades
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 vipaccounts@benzinga.com