HIFS - Why Signature Bank Could Be A Double Long Term

August, 02 2021 07:30 AM Hingham Institution for Savings

Signature Bank reported solid Q2 earnings, with EPS up 60% year over year.
Updating our model and valuation, and we peg the downside to $185 to $200, but the upside long term to $450 (in 3-4 years).
SBNY announced a small equity raise on July 21st. The stock has pulled back offering a nice entry point for the long term investor.
With loan growth hitting 25% last year and likely 20% this year, we find the stock far too cheap at 14.6x 2021 and 12.6x 2022 earnings.
As a Compounder, SBNY has remarkably grown EPS by 16% per year from 2007 to 2020.

For further details see:

Company Name:	Hingham Institution for Savings
Stock Symbol:	HIFS
Market:	NASDAQ
Website:	hinghamsavings.com