NEW YORK (TheStreet) -- Shares of NewBridge Bancorp (NBBC - Get Report) are down -1.67% to $8.53 after Keefe, Bruyette & Woods downgraded the company to "market perform" from "outperform" on valuation.
The firm reiterated its price target of $8.50.
TheStreet Ratings team rates NEWBRIDGE BANCORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWBRIDGE BANCORP (NBBC) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NBBC's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 6.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, NBBC's share price has jumped by 43.05%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, NEWBRIDGE BANCORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Commercial Banks industry. The net income has significantly decreased by 27.1% when compared to the same quarter one year ago, falling from $4.73 million to $3.45 million.
- Net operating cash flow has significantly decreased to $5.05 million or 62.21% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: NBBC Ratings Report