BHRB - Burke & Herbert: Financial Service Upside But Perhaps Not The Right Price

2024-05-12 07:00:00 ET

Summary

• Burke & Herbert's stock has declined while the S&P500 has risen, indicating a lack of investor interest.
• The merger with Summit has enhanced the company's position, but it may not be a good investment at its current price.
• The company's 1Q24 results were mixed, with lower net income and a significant increase in non-performing loans.

Dear readers/followers,

My last coverage of the financial company Burke & Herbert and the associated merger with this stock was done at a conviction or rating of "HOLD". This turned out to be the right choice for investors, as the company has moved down double digits during a time when the S&P500 is up almost 10%. You can see the result below, and you can find my last article, with the aforementioned neutral rating here.

In this article, I'll update on Burke & Herbert as a company. When I last wrote about it, the merger had been finalized which overall will enhance its position and overall appeal - at least how I saw it, resulting in a bank with over $8B in assets and is expected to have a 2024E ROATCE of 22% and ROAA of 1.4%. ...

For further details see: