Susquehanna Bancshares (SUSQ) of Lititz, Penn., closed at $10.09 Friday, returning 21% year-to-date, after last year's 13% decline. The company in April raised its quarterly dividend by two cents to five cents a share, for a dividend yield of 1.98%.
The shares trade for 16 times tangible book value and for 11 times the consensus 2013 EPS estimate of 95 cents. The consensus 2012 EPS estimate is 80 cents.
Casey Haire has a $12 price target for Susquehanna Bancshares.Harmon said on Monday that in Susquehanna's Southwest Pennsylvania footprint, "residential real estate and construction has seen some turnaround, although no clear trend of growth has emerged as pickup remains scattered geographically, and that "manufacturing data continues to show improvement, but the pace appears to be decelerating, offsetting any trend that may have been developing in average worked hours." Harmon added that Susquehanna's acquisition of Tower Bancorp in February "should lead to stronger commercial loan growth given the strength of pipelines at the acquired entity, but prospects for organic commercial loan growth remain minimal until activity picks up more." Interested in more on Susquehanna Bancshares? See TheStreet Ratings' report card for this stock.