The Analyst Verdict: Customers Bancorp In The Eyes Of 6 Experts

In the preceding three months, 6 analysts have released ratings for Customers Bancorp CUBI, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $60.33, along with a high estimate of $80.00 and a low estimate of $52.00. This current average has increased by 0.84% from the previous average price target of $59.83.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of Customers Bancorp by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Customers Bancorp. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Customers Bancorp compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Customers Bancorp's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Customers Bancorp's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Get to Know Customers Bancorp Better

Customers Bancorp Inc is a bank holding company engaged in banking activities. It provides financial products and services to small and middle-market businesses, not-for-profits, and consumers. The company operates in Lending Activities, Commercial Lending, Consumer Lending, Private Banking, Deposit Products, Other Funding Sources, and Financial Products and Services. The majority of revenue is derived from commercial lending.

Breaking Down Customers Bancorp's Financial Performance

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Negative Revenue Trend: Examining Customers Bancorp's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -23.57% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 26.29%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Customers Bancorp's ROE excels beyond industry benchmarks, reaching 2.62%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Customers Bancorp's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.2%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Customers Bancorp's debt-to-equity ratio stands notably higher than the industry average, reaching 0.84. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.