Philographer
- Stephens updated Capital Bancorp (NASDAQ:CBNK) to Overweight from Equalweight after the Rockville, Maryland-based regional bank announced it has agreed to acquire Integrated Financial Holdings (OTCQX:IFHI) for cash and stock in a deal valued at $66 million.
- Analyst Brody Preston said so The deal complements CBNK’s regional and national branch-lite model by focusing on niche vertical expertise and strong risk-adjusted returns.
- “Stephens favors the integration of a vertical and differentiated, high-fee, niche C&I (commercial and industrial) revenue mix, which increases the EPS contribution of commercial banks to 67%, a remix which it finds capable of enhancing multiple, while also reducing CRE (commercial real estate) and construction concentrations below regulatory guidelines and maintaining capital ratios well above peers,” the analyst wrote in a note to clients .
- Preston aims to manage metrics of 8.9x trailing 12-month EPS and 1.07x tangible book value with approximately 5% dilution recovered over 1.8 years coupled with 17% EPS accretion .
- The Overweight analyst rating on Capital Bancorp (CBNK) contrasts with the SA Quant rating of Sell and agrees with the average Wall Street rating of Buy.