Several analysts have recently weighed in on Boston Private Financial Hldg Inc (NASDAQ:BPFH) issuing notes to investors. Jennifer H. Demba of SunTrust Robinson reiterated their Buy rating on the stock 3 month ago with a $15.00 price target, or 13.81% Upside to the last closing price.
“BPFH reported 2Q15 EPS of $0.20, which was above consensus and STRH expectations of $0.19. The primary driver of the upside to our model was higher non-core fee income and no provision partially offset by higher expenses and lower spread income. A sequential decline in reported net interest income to $47.7 million was due to $1.6 million lower net recoveries in 2Q15. However, core net interest income increased 1.5% sequentially and the core NIM expanded by 1 basis point excluding the lower recoveries.”
Jennifer also added, “Average loan balances increased 1% sequentially evenly distributed between loan types. The company continues to make progress in its West Coast loans and deposits. About 43% of loan growth came from California. The deposit mix also continues to improve. Our model assumes mid-single digit loan and deposit growth in future periods and very modest NIM expansion as the Fed begins to raise interest rates. Fee income increased 3% from the prior quarter to $43 million above consensus and STRH estimates of $41 million largely due to the $1.1 million increase in the market value adjustment for the Banyan earn out and a $600,000 gain on partnership investments. However, assets under management growth and wealth management fees are below expectations.”
Another analyst Jake Civiello of RBC Capital Markets issued a note 3 month ago with a Sector performs rating on the stock and $14.00 price target or 4.48% upside to the last closing price.
“For our base case scenario, we expect U.S. real GDP growth of about 2.4% and an unemployment rate near 5.4% in 2015. We assume consistent average loan growth will approach a mid-single-digit annualized level through 2015, combined with relative net interest margin stability at about 2.90%. Moderately higher net interest income combined with gradually higher investment management and wealth management income should result in improving profitability metrics. Our $14 price target represents about 15x our 2016 EPS estimate of $0.87, or 1.6x estimated forward 2Q16 book value per share of $8.53. ”
Boston Private Financial Hldg Inc (NASDAQ:BPFH) is a national financial services organization that owns Wealth Management and Private Banking affiliates with offices in Boston, New York, Los Angeles, San Francisco, San Jose, Atlanta, Florida, Wisconsin, and Texas. The Company has a $7 billion Private Banking balance sheet, and manages approximately $30 billion of client assets.
The Company positions its affiliates to serve the high net worth marketplace with high quality products and services of unique appeal to private clients. The Company also provides strategic oversight and access to resources, both financial and intellectual, to support affiliate management, marketing, compliance and legal activities. Boston Private Financial Holdings, Inc. BPFH, -0.75% (the “Company” or “BPFH”) announced the appointment of Kimberly S. Stevenson to its Board of Directors. Ms. Stevenson was also elected to the Board of Directors of Boston Private Bank & Trust Company, a wholly owned subsidiary of the Company.
“We are very excited to be able to add a Board member with Kim’s skills to our Board of Directors,” said Stephen M. Waters, Chairman of the Board of Directors of the Company and the Bank. “Kim has unparalleled experience in the information technology space where she has been the Chief Information Officer at Intel for nearly four years. With the financial services industry increasingly reliant on technology and capabilities around information technology, we believe Kim will bring exactly the right talent to our Board at this time.”