Bank of America Securities analyst Brandon Berman has upgraded Associated Banc-Corp ( NYSE: ASB ) to Neutral from Underperform Tuesday on prospects for continued earnings growth.
ASB stock gained 1.9% in early trading and remains elevated by 2.2% in the past year. Berman thinks the risk-reward profile of ASB is now "appropriately balanced," he wrote in a note.
The analyst pointed out that the regional lender has achieved its year-end core commercial growth objective ahead of schedule, demonstrating its "successful execution against its strategy: balanced loan growth while managing funding costs."
"Concerns that ASB would see less NIM expansion than peers given the funding needs to support the growth initiative (thesis underpinning our Underperform rating) have moderately abated," Berman contended.
In turn, he raised his 2023 EPS estimate to $2.46 from $2.14 due to higher growth assumptions in net interest income. That compares with the $2.43 consensus.
Both the Quant system and the average Wall Street analyst view ASB stock as a Hold, aligning with Berman's Hold rating.
Earlier this week, (Oct. 21) Associated Banc-Corp rises after Q3 results beat, FY22 guidance raised .
For further details see:
Associated Banc-Corp raised to Neutral at BofA on prospects for further earnings growth