SVB Financial Upped to Strong Buy - Analyst Blog

By Zacks Equity Research,

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On Mar 29, Zacks Investment Research upgraded SVB Financial Group ( 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 ( CVCY ), Summit State Bank ( SSBI ) and American River Bankshares ( 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 (AMRB): Free Stock Analysis Report

CENTRAL VLY COM (CVCY): Free Stock Analysis Report

SVB FINL GP (SIVB): Free Stock Analysis Report


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: AMRB , CVCY , SIVB , SSBI

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