NEW YORK ( TheStreet) -- Bridge Capital Holdings (Nasdaq: BBNK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The gross profit margin for BRIDGE CAPITAL HOLDINGS is currently very high, coming in at 90.20%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BBNK's net profit margin of 11.00% significantly trails the industry average.
  • Net operating cash flow has significantly increased by 650.27% to $25.16 million when compared to the same quarter last year. In addition, BRIDGE CAPITAL HOLDINGS has also vastly surpassed the industry average cash flow growth rate of 46.13%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 330.1% when compared to the same quarter one year prior, rising from $0.37 million to $1.57 million.
  • BRIDGE CAPITAL HOLDINGS reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BRIDGE CAPITAL HOLDINGS turned its bottom line around by earning $0.01 versus -$0.42 in the prior year. This year, the market expects an improvement in earnings ($0.47 versus $0.01).
  • The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 15.1%. Growth in the company's revenue appears to have helped boost the earnings per share.

Bridge Capital Holdings operates as the bank holding company for Bridge Bank, National Association that provides commercial and retail banking services to small and medium size commercial businesses, business professionals, and retail customers in California. The company has a P/E ratio of 43.9, below the average banking industry P/E ratio of 57.1 and above the S&P 500 P/E ratio of 17.7. Bridge has a market cap of $171.9 million and is part of the financial sector and banking industry. Shares are up 30.2% year to date as of the close of trading on Tuesday.

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