Market Overview

10 Mid-Sized Banks That Look Attractive In M&A Circles

10 Mid-Sized Banks That Look Attractive In M&A Circles

Bank of America analyst Ebrahim Poonawala recently took an in-depth look at potential buyout targets in the banking space. Bank of America’s M&A Scorecard ranks potential buyout targets based on thirteen different criteria, including social factors, bud triggers and sell triggers.

“We believe challenged revenue growth and rising burden of tech/compliance costs make the option to merge in order to derive economies of scale appealing,” Poonawala explained.

Related Link: More Mid-Cap Biotech M&A May Be Coming

Although slumping bank stocks have led many of the larger players to shift their spending focus to share repurchases, Poonawala believes that the attractive valuations of several potential takeover targets will be hard to resist.

He added that, even in the absence of rising rates, quality deposits are still a major factor for potential buyers.

Poonawala believes that investors should consider the strong possibility of M&A when determining their banking investment strategies.

Top Buyout Targets

Bank of America sees the following 10 bank stocks as the top buyout targets:

  • Associated Banc Corp (NYSE: ASB)
  • Capital Bank Financial Corp (NASDAQ: CBF)
  • Comerica Incorporated (NYSE: CMA)
  • FCB Financial Holdings Inc (NYSE: FCB)
  • First Horizon National Corp (NYSE: FHN)
  • First Republic Bank (NYSE: FRC)
  • First South Bancorp, Inc. (NASDAQ: FSBK)
  • Prosperity Bancshares, Inc. (NYSE: PB)
  • Synovus Financial Corp. (NYSE: SNV)

Disclosure: The author holds no position in the stocks mentioned.

Image Credit: Public Domain

Latest Ratings for ASB

Oct 2020Wells FargoUpgradesEqual-WeightOverweight
Sep 2020Piper SandlerMaintainsNeutral
Jul 2020JefferiesDowngradesBuyHold

View More Analyst Ratings for ASB
View the Latest Analyst Ratings


Related Articles (ASB + CBF)

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