SVB Financial Upped to Strong Buy - Analyst Blog
Benzinga 12 years ago
On Mar 29, Zacks Investment Research upgraded SVB Financial Group (NASDAQ: SIVB) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
SVB Financial has been witnessing rising earnings estimates on the back of strong fourth-quarter 2013 results, which included improved revenues, growth in deposits & loans and a steady capital position. The long-term expected earnings growth rate for the company is 10.25%. Further, SVB Financial recorded a solid year-to-date return of 22.04%.
SVB Financial reported its fourth-quarter earnings on Jan 23 with earnings per share of $1.27 beating the Zacks Consensus Estimate by 14.41%. In all the quarters of 2013, the company scripted positive earnings surprises, with average earnings beat for the year at 7.25%.
Robust results were primarily driven by strong loan growth and increased revenues. Yet these positives were partially offset by rising operating expenses.
For 2014, management expects non-GAAP operating expenses to rise in the mid-single digits and it expects the net interest income growth in low double digits. The company also anticipates the average deposit balance to grow in the mid-double digits and the average loan balance to grow in mid-to-high double digits.
For 2014, the Zacks Consensus Estimate increased 6.2% to $5.44 per share over the last 60 days. For 2015, the Zacks Consensus Estimate advanced 2.9% to $5.61 per share over the same time period.
Other Stocks to Consider
Apart from SVB Financial, other Western banks worth considering include Central Valley Community Bancorp (NASDAQ: CVCY), Summit State Bank (NASDAQ: SSBI) and American River Bankshares (NASDAQ: AMRB). Central Valley Community Bancorp and Summit State Bank carry a Zacks Rank #1, while American River Bankshares carries a Zacks Rank #2 (Buy).
AMER RIVER BSH (NASDAQ: AMRB): Free Stock Analysis Report
CENTRAL VLY COM (NASDAQ: CVCY): Free Stock Analysis Report
SVB FINL GP (NASDAQ: SIVB): Free Stock Analysis Report
SUMMIT STATE BK (NASDAQ: SSBI): Get Free Report
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