SIVB - SVB Financial rises 10% with ratings upgrade after strong Q1 results

SVB Financial (SIVB +10.0%) rises 10% on Friday after posting Q1 beat and displaying strong credit quality. Wedbush maintains Outperform rating for the stock and raises 2022/2023 GAAP EPS estimates to $33.00/$47.15 from $30.03/$45.11 owing mainly to higher NIM assumptions; mentions ''SVB Financial is trading at 10.6x our 2023 EPS estimate compared to peers at 9.2x. Our $675 price target (was $800) is based on it trading at 14.3x our 2023 core EPS estimate or which is above peers owing to our expectation for above-average long-term earnings growth'' BoFA Global Research reiterates a Buy rating and states in the research report, ''Our $725 PO incorporates recession risk. We apply a trough P/TBV multiple to our YE22 TBV (25% weighting). The remaining 75% is based on 2023 P/E and P/TBV multiples (equally-weighted). We assign 20.5x/3.7x multiples, respectively, above average multiple for the BofA mid to small cap universe (12.0x/2.4x) due to

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SVB Financial rises 10% with ratings upgrade after strong Q1 results