Parents of younger kids will probably relate to the idea
of buying clothes with the expectation that they'll "grow into them"
relatively soon. You could say that Park Sterling (NASDAQ:PSTB)
has followed a similar strategy with its staffing and spending in
recent years - absorbing higher costs and generating lower returns than
its peers, but laying the foundation to leverage strong lending growth
in the coming years.
Park Sterling has shown that it
means to grow through both organic and inorganic channels. The company
has added capabilities in residential construction lending, trust
management, capital markets and other segments, while also hiring
banking teams to drive lending growth. At the same time, the company has
executed three sizable whole-bank acquisitions to grow its footprint
from Georgia to Virginia. Although the shares do not look like
significantly undervalued today, current holders and/or more aggressive
buyers can at least look to potential for greater than expected loan
growth and better cost leverage to drive higher estimates and valuations
down the line.
Continue here:
Park Sterling Poised For Strong Growth
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