Shares of Wintrust Financial (WTFC) of Lake Forest, Ill., closed at $28.12 Wednesday, for a year-to-date decline of 14%.
The company fully repaid $193 million TARP money in December 2010.Wintrust has been an active acquirer of failed banks, purchasing three failed institutions from the Federal Deposit Insurance Corp. this year, including Community First Bank - Chicago in February, Bank of Commerce of Wood Dale, Ill., in March, and First Chicago Bank & Trust in July. FIG Partners analyst John Rodis upgraded his rating for Wintrust to "outperform" in November, saying that a pullback in the share price to $26.71 on Nov. 17, presented "an attractive buying opportunity for investors." The shares have climbed 5% since then, but Rodis's $33 price target still implies 17% upside from Wednesday's close. The analyst's target is based a valuation of roughly 1.2 times estimated tangible book value going out one year, and "a low-teen P/E multiple to our forward EPS estimates," of $1.84 for 2012. Rodis added that "While WTFC shares might not appear as inexpensive on a P/E bases (vs. some regional banks) we believe the trade-off with WTFC is one of a higher growth franchise at the expense of some near-term earnings power." The shares trade for 0.9 times their Sept. 30 tangible book value of $32.11, according to SNL, and for 14 times the consensus 2012 EPS estimate of $2.06, among analysts polled by FactSet. Out of 13 analysts covering Wintrust Financial, seven rate the shares a buy, while the remaining analysts all have neutral ratings. Interested in more on Wintrust Financial? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV