Thursday, March 17, 2022

Synovus Offers An Attractive Mix Of Organic And Macro Growth

 

I continue to like the new Synovus (NYSE:SNV) that is emerging. Not only does this bank offer good exposure to the above-average growth potential of the Southeast U.S., as well as slightly above-average rate sensitivity, but management has clear plans in place to drive above-average growth through an ongoing focus on growing the commercial business (loans and fees). I do have a few hesitations about the rate assumptions, expense growth, and competition, but this is a good plan at a bank that is already doing a lot right.

Valuation is okay on a longer-term basis relative to some other regional and super-regional banks, but a 12x multiple to my '23 EPS estimate can still support an attractive fair value at this level. At this point, I think Synovus is a bank well worth considering.

 

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Synovus Offers An Attractive Mix Of Organic And Macro Growth

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