Market Overview

Gabelli Identifies Potential Eagle Bancorp Acquirers, Says Stock Pullback An Overreaction

Share:
Gabelli Identifies Potential Eagle Bancorp Acquirers, Says Stock Pullback An Overreaction
Related EGBN
A Preview Of Eagle Bancorp's Q3 Earnings
Benzinga's Top Upgrades, Downgrades For August 27, 2018
Top-Rated Stocks: Eagle Bancorp Sees Composite Rating Climb To 96 (Investor's Business Daily)

Eagle Bancorp, Inc. (NASDAQ: EGBN), a bank focused on lending to commercial real estate and commercial and industrial borrowers, earned a bullish review from Gabelli Securities.

The Analyst

Analyst Steve Comery initiated coverage of Eagle Bancorp with a Buy rating and 2019 present market value estimate of $74 per share.

The Thesis

Since 2011, Eagle Bancorp's balance sheet has generated "superior marginal returns," and the company has reported in-line or superior peer credit metrics in terms of net charge-offs and non-performing loans, Comery said in the Monday initiation note. (See the analyst's track record here.) 

Eagle's core competencies in commercial lending and non-interest deposits gathering have historically protected margins and could serve as a sustainable competitive advantage, the analyst said. 

Comery attributes Eagle's recent stock price weakness to concerns about deposit pricing and loan growth. The pullback is an overreaction when weighed against the company's "proven margin maintenance and loan growth," he said. 

Gabelli highlighted potential acquirers for Eagle Bancorp's business, including F.N.B. Corp (NYSE: FNB), United Bankshares, Inc. (NASDAQ: UBSI) and Union Bankshares Corp (NASDAQ: UBSH).

The Price Action

Eagle Bancorp shares have lost about 6.2 percent year-to-date. The stock was up 0.28 percent at $54.45 at the time of publication Monday. 

Related Links:

Bank On This Bank ETF

Analyst Says Things Could Get Worse For Deutsche Bank's Stock

Latest Ratings for EGBN

DateFirmActionFromTo
Aug 2018Gabelli & Co.Initiates Coverage OnBuy
Jan 2018Stephens & Co.UpgradesEqual-WeightOverweight
Feb 2017Sandler O'NeillUpgradesHoldBuy

View More Analyst Ratings for EGBN
View the Latest Analyst Ratings

Posted-In: Gabelli Securities Steve ComeryAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

Related Articles (EGBN + FNB)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DLTRBernsteinUpgrades0.0
CNPUBSUpgrades34.0
UGIUBSDowngrades63.0
ATOUBSDowngrades106.0
CSCONomuraDowngrades50.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

What We Know So Far About Apple's New iPhone

Hibbett Sports Has Become A 'Show Me Stock,' Canaccord Says In Downgrade