If you want a good growth story in banking, you're going to have to pay for it. Like Bank of the Ozarks (NASDAQ:OZRK), PrivateBancorp (NASDAQ:PVTB)
is showing uncommonly good loan growth and has a large addressable
opportunity supporting many years of growth. But like Bank of the
Ozarks, that growth potential doesn't come with a bargain price.
I
like PrivateBancorp's leverage to higher rates and its leverage to
economically sensitive loan growth. I also think that the company has
made excellent progress in working off legacy assets and fundamentally
altering its business mix. If you want a bargain in banking, you're
going to have to shop amongst banks well off the beaten path or with
significant ongoing concerns/risks regarding asset growth, expense
leverage, and regulatory/legal issues (names like Citigroup (NYSE:C) and Bank of America (NYSE:BAC)
come to mind). PrivateBancorp doesn't look like a bargain, but if you
want to ride along with a rate-sensitive growth story, there may be
something here for you.
Continue reading here:
PrivateBancorp Already Priced For Big Things
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