On Mar 29, Zacks Investment Research upgraded
SVB Financial Group
) to a Zacks Rank #1 (Strong Buy).
AMER RIVER BSH (AMRB): Free Stock Analysis
CENTRAL VLY COM (CVCY): Free Stock Analysis
SVB FINL GP (SIVB): Free Stock Analysis
SUMMIT STATE BK (SSBI): Get Free Report
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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
Other Stocks to Consider
Apart from SVB Financial, other Western banks worth considering
Central Valley Community Bancorp
Summit State Bank
American River Bankshares
). Central Valley Community Bancorp and Summit State Bank carry a
Zacks Rank #1, while American River Bankshares carries a Zacks
Rank #2 (Buy).