Synovus Still Meaningfully Undervalued, But Also Lacking Quick Fixes To Sentiment

It’s a little lonely being bullish on Synovus (SNV), particularly when you realize the sector-wide issue with near-term earnings headwinds means that the apparent undervaluation at Synovus is largely moot for the time being. And the last quarter certainly didn’t help matters, with a higher provisioning expense and uptick in non-performing loans spooking investors who were already nervous about the credit quality of the FCB business Synovus acquired.

Synovus still looks undervalued to me, but I freely admit that just waiting for the Street to see the value here is not a particularly compelling bullish thesis. There’s still a solid value argument for holding these shares, but it’s going to take patience for the stock to work, and management is a little short on options now for driving much positive news in the near term.

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Synovus Still Meaningfully Undervalued, But Also Lacking Quick Fixes To Sentiment