Sterne Agee Has Buy On Signature Bank (SBNY)

Sterne Agee has a Buy rating and a $63 price target on shares of Signature Bank SBNY.

In a note to investors, Sterne Agee writes, "BUY-rated SBNY remains our top organic growth pick, as we remain comfortable that EPS momentum will remain strong through 2013. As shown in our DCF/NPV analysis on page 8, we are increasing our price target to $63 versus $57, which reflects a P/E of 17x our 2013E EPS of $4.50 and P/TBV of 2.2x. The forward P/E represents a discount to SBNY's five-year historical average P/E of 26x, while the implied P/TBV multiple of 2.2x is slightly higher than the historical P/TBV of 2.0x. Both multiples reflect a period of time when SBNY was far less profitable than our modeling reflects going forward."

Shares of SBNY lost 50 cents yesterday to close at $53.05, a loss of 0.93%.