NEW YORK (TheStreet) -- Shares of Susquehanna Bancshares, Inc. (SUSQ) are flat in early market trading after the financial holding company had its rating raised to "outperform" from "neutral" by analysts at Boenning & Scattergood this morning.

The firm cited the recent pullback in shares for its upgrade.

Boenning & Scattergood analysts set a $11.50 price target.

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Separately, TheStreet Ratings team rates SUSQUEHANNA BANCSHARES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate SUSQUEHANNA BANCSHARES INC (SUSQ) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its expanding profit margins over time. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for SUSQUEHANNA BANCSHARES INC is currently very high, coming in at 88.46%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 20.90% is above that of the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.7%. Since the same quarter one year prior, revenues slightly dropped by 6.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • SUSQUEHANNA BANCSHARES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SUSQUEHANNA BANCSHARES INC increased its bottom line by earning $0.93 versus $0.77 in the prior year. For the next year, the market is expecting a contraction of 12.9% in earnings ($0.81 versus $0.93).
  • The change in net income from the same quarter one year ago has exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income has decreased by 4.7% when compared to the same quarter one year ago, dropping from $45.65 million to $43.49 million.
  • Net operating cash flow has significantly decreased to $47.04 million or 56.80% when compared to the same quarter last year. Despite a decrease in cash flow SUSQUEHANNA BANCSHARES INC is still fairing well by exceeding its industry average cash flow growth rate of -97.63%.
  • You can view the full analysis from the report here: SUSQ Ratings Report

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