The Bank of Princeton Receives a Buy from B.Riley FBR

By Carrie Williams

B.Riley FBR analyst Steve Moss assigned a Buy rating to The Bank of Princeton (NASDAQ: BPRN) today and set a price target of $37. The company’s shares closed on Friday at $34.46.

Moss wrote:

“After the close on Friday, 12/22, BPRN disclosed that it expects to record a large $2.5M-2.8M ($0.26-0.29 per share) loan loss provision due to credit impairments from several commercial relationships. Details on the credit impairments are limited, but the bulk of the provision relates to a lending relationship that was previously impaired. We estimate the provision and a likely reversal of accrued interest could reduce our 4Q17 EPS estimate to ~$0.32 versus our current estimate of $0.51. The disclosure of significant credit impairments is a negative for the stock as it implies that our forward estimates, which includes a modest decline in the loan loss reserve, may be too aggressive. Our Buy rating and $37 price target are under review.”

According to TipRanks.com, Moss is a 4-star analyst with an average return of 9.0% and a 78.0% success rate. Moss covers the Financial sector, focusing on stocks such as Seacoast Banking Corporation Of Florida, Pinnacle Financial Partners, and Huntington Bancshares Inc.

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 $225.6M and has a P/E ratio of 14.92. The company has a book value ratio of 1.3531.

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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.