M&T Bank Not Fully Appreciated For Its Excellence

Despite a sharp rebound since around Christmas, bank stocks still aren’t getting their due as investors remained concerned about the risks of recession, yield inversion, rising credit losses, and generally lackluster net growth prospects. Not surprisingly, then, while M&T Bank (MTB) has held its own with peers like Bank of America (BAC), BB&T (BBT), JPMorgan (JPM), and PNC (PNC), it’s still arguably not getting its full due from the market.

It doesn’t sound as though M&T will generate exceptional loan growth next year, nor exceptional pre-provision profit growth, and that does temper my excitement for the shares. I’d also note that there are other bank stocks that appear to trade at even wider discounts to fair value, including PNC. Considering all that, M&T is still not my favorite name in the bank sector, but I wouldn’t disagree with any long-term shareholder who intends to maintain their position.

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M&T Bank Not Fully Appreciated For Its Excellence