KBW Analysts: Pay Attention To Bankwell Financial Now

• Bankwell Financial Group Inc BWFG shares are down 14 percent year-to-date after touching a high of $21 on December 31, 2014.
• Keefe Bruyette & Woods analyst Collyn Gilbert upgraded the rating on the company from Market Perform to Outperform, while raising the price target from $20 to $22.
• Although the company’s shares have lagged peers as well as the broader market, improving fundamentals and better growth trends indicate a good entry point, Gilbert said.

Analyst Collyn Gilbert mentioned that Bankwell Financial has undergone a smooth transition during the past year and its financial performance is improving with growth trends appearing to be favorable.

“Capital levels should sufficiently support growth, the overall risk profile of the balance sheet appears in check, and the franchise is of a size that could be attractive to certain fill-in buyers,” Gilbert added.

Bankwell Financial’s sound management understands the shareholder return dynamics, and the recent underperformance of the shares offers a good entry point for investors, Gilbert believes.

The EPS estimates for 2015 and 2016 have been raised from $1.11 to $1.17 and from $1.36 to $1.44, respectively, to reflect an improved loan growth outlook, marginally lower provision and higher fee income.