Bank of America Resumes Coverage of Signature Bank

Bank of America has published a report on Signature Bank SBNY, reinstating coverage on the commercial bank. In the report, Bank of America comments, "SBNY is a Manhattan, NY based commercial bank pure play with $12.4bn in assets employing a unique commercial middle market niche strategy. SBNY profiles the type of bank we prefer to be long in the current environment, namely: 1) non macro top-line growth catalysts; 2) muted credit tail risk; 3) above peer, high quality EPS growth without credit leverage; and 4) fee income unaffected by regulatory reform. For this, the stock deserves premium valuation of 2.3x TBV and 14x 2012 EPS, in our view. Despite material YTD outperformance, positive momentum will likely continue as investors should continue to award premium multiples to banks that can produce organic revenue growth today." Bank of America rated Signature Bank a BUY with a price target of $64.00. Signature Bank closed Friday at $57.67.