SIVB - SVB Financial upgraded to Buy as Fed rate hikes acquisitions fuel earnings

SVB Financial (NASDAQ:SIVB) stock is rising 1.2% in early Wednesday trading after Argus Research analyst Kevin Heal upgraded the stock to Buy from Hold as the parent of Silicon Valley Bank stands to benefit from upcoming Federal Reserve interest rate hikes. "More than 90% of the company's loans are based on variable short-term rates, and its 1Q results benefited from higher interest income as the Federal Reserve began its rate hike campaign," Heal wrote in a note to clients. "Looking ahead, we expect further benefits from Fed rate hikes as well as from recent acquisitions." He also pointed out that SIVB shares have dropped 29% YTD, compared with the S&P 500's 13% decline and the S&P Bank ETF (KBE) slipping 14% during that same period. In SIVB's Q1 earnings call, President and CEO Greg Becker said, "we're raising our 2022 revenue outlook and our outlook for loan growth and have meaningful revenue

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SVB Financial upgraded to Buy as Fed rate hikes, acquisitions fuel earnings