NTB - Bank of N.T. Butterfield stock climbs after Wells Fargo turns bullish

Bank of N.T. Butterfield ( NYSE: NTB ) stock is gaining 3.8% in Thursday morning trading after Wells Fargo analyst Timur Braziler upgraded the Bermuda-based bank to Overweight from Equal Weight. The company's conservative balance sheet and almost 6% dividend yield is expected to provide some ballast in what's likely to remain a volatile environment for bank stocks.

"NTB shares typically perform best during rising rates, especially when there is broader uncertainty surrounding the mainland banks," Braziler wrote in a note to clients.

He expects that the moat surrounding NTB deposits to result in an industry-low deposit beta. That means net interest income should eclipse company ALCO (assets and liabilities committee) disclosures and drive top-level EPS growth, he added.

"We view (NTB's) balance sheet structure as both conservative and highly asset sensitive, as virtually the entire asset base reprices with higher rates," Braziler said.

Braziler also expects Bank of N.T. Butterfield ( NTB ) to resume stock buybacks.

The Overweight rating takes a more bullish view than Seeking Alpha's Quant system, which has a Hold rating on the stock; it aligns with the average Wall Street rating of Buy.

SA contributor The Alpha Sieve names NTB among two high-yield dividend stocks to buy in 2022

For further details see: