- 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:
Why Signature Bank Could Be A Double Long Term