WesBanco Inc Gets a Hold Rating from B.Riley FBR

By Jason Carr

B.Riley FBR analyst Steve Moss reiterated a Hold rating on WesBanco Inc (NASDAQ: WSBC) today and set a price target of $40. The company’s shares closed yesterday at $38.92.

Moss noted:

“We reiterate our Neutral rating and $40 price target on WesBanco following the announcement of plans to acquire First Sentry Bancshares, a community bank based in Huntington, WV. This pushes WSBC over the $10B-in- assets threshold and fits WSBC’s guidelines for pursuing acquisitions within driving distance of its Wheeling, WV, headquarters. The deal is modestly accretive to EPS, and the TBV earn-back of 2.5 years (using the crossover method) seems reasonable to us. However, First Sentry is small ($666M in assets), and the deal will lead to a $9M hit to pretax income (~$0.14 to EPS) due to lost interchange. Accordingly, we expect WSBC to pursue a second deal. Overall, we look at this as a solid acquisition for WSBC, but we expect the company to continue to look for additional acquisitions to help distribute costs associated with $10B over a larger base.”

According to TipRanks.com, Moss is a 3-star analyst with an average return of 3.4% and a 55.6% success rate. Moss covers the Financial sector, focusing on stocks such as Seacoast Banking Corporation Of Florida, Pinnacle Financial Partners, and Huntington Bancshares Inc.

WesBanco Inc has an analyst consensus of Hold, with a price target consensus of $42.67.

The company has a one-year high of $44.19 and a one-year low of $34.81. Currently, WesBanco Inc has an average volume of 99.71K.

Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock.

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WesBanco, Inc. is a bank holding company. It offers financial services including retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. The company operates through the following segments: Community Banking, and Trust & Investment Services.