CUBI - Northwest Bancshares: Too Early For An Upgrade
2024-07-17 17:35:00 ET
Summary
- Shares have underperformed expectations since I last downgraded the firm earlier this year.
- This is likely due to some weakness on the income statement side of the picture.
- Shares of Northwest Bancshares are attractively priced on a relative basis, but low asset quality justifies the current trading multiples, warranting a "hold" rating.
Usually, when I write a company a "hold," it's a statement that I believe that shares are likely to perform more or less in line with the broader market for the foreseeable future. But seeing as how investing is not exactly a perfect science, these kinds of calls don't always work out as intended. A good example of this can be seen by looking at Northwest Bancshares ( NWBI ), a fairly sizable bank with a market capitalization of $1.43 billion and 142 branch offices spread throughout the markets in which it operates. Back in the middle of January of this year, I ended up downgrading the stock from a "buy" to a "hold." This came after shares had skyrocketed 18.1% since my "buy" rating in October 2023. For context, this was nearly double the 9.6% increase seen by the S&P 500 over the same window of time....
Northwest Bancshares: Too Early For An Upgrade