Bank of America Corp. Initiates Coverage on SVB Financial Group (SIVB)
Bank of America Corp. initiated coverage on shares of SVB Financial Group (NASDAQ:SIVB) in a research note issued on Wednesday, AnalystRatings.NET reports. The firm set a “buy” rating and a $110.00 price target on the stock. Bank of America Corp.’s price target would indicate a potential upside of 26.18% from the company’s current price.
The analysts wrote, “We are initiating coverage on Santa Clara CA based Silicon Valley Bank (SIVB) with a Buy rating. Based in the heart of Silicon Valley, SIVB has established itself as the go-to lender for companies and professionals in the technology, life science, venture capital, private equity, and premium wine industries. SIVB has materially outperformed peers YTD given its above average EPS growth outlook and as investors increased exposure to names where EPS is most sensitive to rising interest rates. Although much of SIVB’s EPS sensitivity to rates is tied to the short end of the curve, we expect valuations to continue to benefit in the run-up to an eventual rate tightening. Our $110 PO implies 2.3x YE14e TBV and 24x ’14e EPS.”
Shares of SVB Financial Group (NASDAQ:SIVB) traded up 1.45% during mid-day trading on Wednesday, hitting $88.445. 116,185 shares of the company’s stock traded hands. SVB Financial Group has a 52 week low of $52.40 and a 52 week high of $91.46. The stock has a 50-day moving average of $85.27 and a 200-day moving average of $79.88. The company has a market cap of $4.029 billion and a price-to-earnings ratio of 21.70.
SVB Financial Group (NASDAQ:SIVB) last announced its earnings results on Thursday, July 25th. The company reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.94 by $0.12. During the same quarter in the previous year, the company posted $0.94 earnings per share. Analysts expect that SVB Financial Group will post $4.04 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on SIVB. Analysts at SunTrust raised their price target on shares of SVB Financial Group from $100.00 to $101.00 in a research note to investors on Thursday, October 3rd. They now have a “buy” rating on the stock. Separately, analysts at Zacks upgraded shares of SVB Financial Group from a “neutral” rating to an “outperform” rating in a research note to investors on Wednesday, September 25th. They now have a $93.00 price target on the stock. Finally, analysts at Keefe, Bruyette & Woods raised their price target on shares of SVB Financial Group from $92.00 to $100.00 in a research note to investors on Wednesday, August 14th. Five equities research analysts have rated the stock with a hold rating and four have given a buy rating to the company. SVB Financial Group has an average rating of “Hold” and a consensus price target of $88.10.
SVB Financial Group (NASDAQ:SIVB) is a diversified financial services company, as well as a bank holding company and financial holding company.
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