Signature Bank (SBNY) looks primed to rally and here’s why
Signature Bank is expected to rally the most by the average analyst, with an implied upside of 49%. Along with PulteGroup, it also has the lowest forward price-to-earnings ratio among the names on the list, at 6.2 times.
Speaking at a financial services conference in December, Eric Howell, chief operating officer at Signature Bank, said that the bank is planning to exit $8 billion to $10 billion in deposits tied to cryptocurrencies, according to a transcript from FactSet. The news arrived as concerns grew over digital currency following the collapse of FTX.
Janney Montgomery Scott maintained its buy rating on the bank’s shares, but reduced per-share earnings estimates for the fourth quarter of 2022, as well as for 2023 and 2024. “Decision to meaningfully reduce digital asset deposit exposure & slow asset growth constrains forward EPS,” wrote analyst Jake Civiello in a December note.
Signature Bank’s stock was down 17.4% in December and off by about 64.4% in 2022.
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Other companies in Signature Bank’s space includes: Western Alliance (NYSE:WAL), PNC Financial Services Gr (NYSE:PNC), United Bankshares (NASDAQ:UBSI), Citizens Financial Group (NYSE:CFG) and Huntington Bancshares (NASDAQ:HBAN).