Like many other Texas banks, Hilltop Holdings (NYSE:HTH)
got hit hard earlier this year, only to come back strong and recently
challenge its 52-week high. While there is enough diversity to make the
notion of a "typical" Texas bank a questionable one, Hilltop at the very
least doesn't have the large energy lending exposures that have tripped
up some of its comparables.
What Hilltop does have,
though, is a strong capital position that can support expanded lending
and M&A, not to mention an asset that can be sold (its insurance
business) to fund additional moves. Hilltop also has a pretty clean
credit profile and a management team that knows how to build (and sell)
banking businesses. While the valuation isn't hands-down cheap, there
does seem to be enough value and potential here to make it worth a
closer look from investors shopping for some bank stock ideas.
Follow this link for more:
Dry Powder, Clean Exposures, And Valuation Make Hilltop Holdings Worth A Look
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