Boenning & Scattergood Issues a Buy Rating on The Bank of Princeton

By Austin Angelo

In a report released today, Matthew Schultheis from Boenning & Scattergood assigned a Buy rating to The Bank of Princeton (NASDAQ: BPRN), with a price target of $35.75. The company’s shares closed yesterday at $31.60.

Schultheis said:

“We are attracted to Bank of Princeton’s projected growth trajectory, above-peer return metrics, and the shares’ relative discount to peers. We believe the Bull/Bear cases point to buying the shares at current levels, and our valuation methodology confirms this view. The stock currently trades at a discount compared to peers (2018 P/E 13.7x vs. 15.1x) and price-to-tangible book (124% [proforma] vs. 149%). In our opinion, the discounts should dissipate as the company posts strong growth with continued better-than-peer profitability. The recent listing of the shares on NASDAQ created the opportunity for inclusion in indices driving demand for the shares from institutional investors.”

According to TipRanks.com, Schultheis is a 4-star analyst with an average return of 14.4% and a 88.2% success rate. Schultheis covers the Financial sector, focusing on stocks such as Orrstown Financial Services Inc, Provident Financial Services, and Susquehanna Bancshares.

The Bank of Princeton has an analyst consensus of Moderate Buy, with a price target consensus of $36.38.

The Bank of Princeton’s market cap is currently $148.5M and has a P/E ratio of 13.17. The company has a book value ratio of 1.3310.

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The Bank of Princeton engages in the provision of personal, business lending, and deposit services. It offers traditional retail banking solutions, one-to four-family residential mortgage loans, multi-family and commercial mortgage loans, construction loans, commercial business loans, and consumer loans including home equity loans and lines of credit.