Bank of America Merrill Lynch Reinstates Signature Bank at Buy

Bank of America Merrill Lynch is out with its report today on Signature Bank SBNY, reinstating SBNY at Buy. In a note to clients, Bank of America Merrill Lynch writes, "SBNY profiles the type of bank we prefer to be long in the current environment, namely: 1) a non-macro top-line growth catalyst, 2) muted credit tail risk, 3) above peer, high quality EPS growth without credit leverage, and 4) fee income unaffected by regulatory reform. SBNY has a differentiated franchise that provides an organic, lower risk means of achieving above average EPS and balance sheet growth. For this, SBNY deserves premium valuation of 2.3x TBV and 14x 2012 EPS." Shares of SBNY closed Friday at $57.67, up 0.30% from Thursday's close.