OCFC - OceanFirst Looking To Disrupt Large New Loan Markets And Generate Significant Operating Leverage
- OceanFirst had a challenging 2021, but the bank exits 2021 with above-average loan growth momentum, ongoing cost-reduction plans, and an expanded lending operation targeting new markets.
- OceanFirst is looking to replicate its success in NYC and Philly by targeting the commercial lending markets in Boston, Baltimore, and Washington, D.C.
- M&A remains both an opportunity and risk; the bank appears to have overpaid for its last acquisition, and the Street is down on bank M&A for now.
- High single-digit long-term core earnings growth, a low-to-mid-teens ROTCE, and a forward P/E multiple of 12x can support a fair value between $25 and $30.
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OceanFirst Looking To Disrupt Large, New Loan Markets And Generate Significant Operating Leverage