Shares of Signature Bank of New York, N.Y, closed at $61.01 Tuesday, returning 2% year-to-date, following a 20% total return during 2011. The five-year total return was 87%.
The company had $15.3 billion in total assets as of March 31.
The shares trade for 1.9 times tangible book value, and for 14.5 times the consensus 2013 EPS estimate of $4.21. The consensus 2012 EPS estimate is $3.67.
Signature Bank's ROA has ranged from 1.13% to 1.23% over the past five quarters.
Guggenheim analyst David Darst on Tuesday upgraded Signature Bank to a "Buy" rating from a neutral rating, with a price target of $71, "given its attractive valuation and catalysts for continued robust organic growth driven by core business and the new specialty and [commercial and industrial] lending teams hired in 1Q12."
Darst said that "25-30% loan growth in 2012 and 2013 is attainable given recent [commercial real estate] volume and the addition of specialty lending and C&I teams."
The analyst expects that Signature Bank's "EPS will grow at a 21% three-year [compound annual growth rate] from 2011 to 2013," and that the company will earn $3.71 a share this year, followed by 2013 EPS of $4.35.
Interested in more on Signature Bank? See TheStreet Ratings' report card for this stock.
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Written by Philip van Doorn in Jupiter, Fla.
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