Maxim Group Reiterates a Buy Rating on Customers Bancorp (CUBI)

By Ryan Adsit

In a report released yesterday, Michael Diana from Maxim Group reiterated a Buy rating on Customers Bancorp (CUBIResearch Report), with a price target of $38. The company’s shares closed yesterday at $20.22.

Diana observed:

“On July 1, CUBI announced that a mortgage warehouse customer had unexpectedly ceased business, prompting CUBI to seize collateral for a $26M loan, giving rise to an estimated $7M-$8M pre-tax loss being included in 2Q19 results. We regard this as non-recurring, and not reflective of credit quality issues. Therefore, we maintain our 2020 EPS estimate of $3.00, and reiterate our Buy rating. Our 12-month price target of $38 equates to a 2020E P/E multiple of 12.7x, which is consistent with the average 2020E P/E multiples of high-quality Small-Cap banks that we follow.”

According to TipRanks.com, Diana is a 5-star analyst with an average return of 6.9% and a 58.7% success rate. Diana covers the Financial sector, focusing on stocks such as First Savings Financial Group, Manhattan Bridge Capital Inc, and Arlington Asset Investment.

Currently, the analyst consensus on Customers Bancorp is a Strong Buy with an average price target of $30.42.

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The company has a one-year high of $29.76 and a one-year low of $16.72. Currently, Customers Bancorp has an average volume of 156K.

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Customers Bancorp, Inc. operates as a bank holding company. It operates through the following segments: Customers Bank Business Banking and BankMobile.