With the calendar about to turn and most U.S. banks great and small having been pummeled in recent months, I wanted to review Sandy Spring Bancorp (SASR)
again as an idea for 2019. The metro DC region still looks pretty
healthy and loan demand does not seem to be a serious concern for Sandy
Spring. Deposit growth and funding costs remain a risk, though, as Sandy
Spring management has had to get more creative in securing the funds it
needs to support profitable growth.
Sandy Spring
still sees itself as a buyer, not a seller, but the decline in the share
price may well cool near-term deal activity. Although I do think the
overall environment for banks has deteriorated somewhat from the middle
of 2018, I still believe Sandy Spring can generate high single-digit
long-term earnings growth, supporting a fair value close to $40.
Click here for more:
Sandy Spring Bancorp Looking Undervalued, But Funding Remains A Risk
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