Maxim Group analyst Michael Diana reiterated a Buy rating on Customers Bancorp (CUBI – Research Report) yesterday and set a price target of $75.00.
Michael Diana has given his Buy rating due to a combination of factors that indicate a promising future for Customers Bancorp. The bank’s recent quarterly earnings surpassed both consensus and prior estimates, showcasing a solid performance. Additionally, the optimistic outlook provided by management regarding the integration of ten new commercial banking teams is a significant point of interest. These teams are expected to increase expenses initially, but should turn profitable by the first quarter of 2025 and contribute positively to the bank’s earnings per share thereafter. Diana recognizes the short-term expense impact but maintains a positive long-term earnings projection for the company.
Furthermore, the report highlights Customers Bancorp’s stable credit quality, with a low percentage of non-accrual loans and a strong loan loss reserve. The strategic shift towards lower-cost core deposits and higher-yield loans is anticipated to improve earnings. Despite a temporary uptick in the efficiency ratio due to the new teams’ onboarding costs, expectations are set for this ratio to normalize by the end of 2024. Diana maintains a 2025 EPS estimate that reflects growth in the balance sheet and net interest income, and an improved net interest margin. The valuation of the bank’s stock at a multiple significantly below the top tier of bank valuations further underpins the Buy rating, indicating a substantial upside potential.
According to TipRanks, Diana is a 5-star analyst with an average return of 13.1% and a 52.71% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Customers Bancorp, and Enova International.
In another report released on April 28, KBW also assigned a Buy rating to the stock with a $65.00 price target.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Customers Bancorp (CUBI) Company Description:
Customers Bancorp, Inc. operates as a bank holding company. It operates through the following segments: Customers Bank Business Banking and BankMobile. The Customers Bank Business Banking segment is delivered predominately to commercial customers in Southeastern Pennsylvania, New York, New Jersey, Massachusetts, Rhode Island, New Hampshire, Washington D.C., and Illinois through a single point of contact business model and provides liquidity to residential mortgage originators nationwide through commercial loans to mortgage companies. The BankMobile segment provides state-of-the-art high-tech digital banking and disbursement services to consumers, students and the under banked nationwide, along with Banking as a Service offerings with existing and potential white label partners. The company was founded on April 7, 2010 and is headquartered in Wyomissing, PA.
