Customers Bancorp (NYSE:CUBI) Price Target Raised to $86.00

Key Points

• Hovde Group raised its price target on Customers Bancorp to $86.00 (implying ~10.3% upside); analysts’ views vary but the consensus is a "Moderate Buy" with a $87.50 average target.
• Q earnings beat expectations — EPS $1.97 vs. $1.88 expected and revenue up 57.9% year-over-year — and the board authorized a $100M share buyback (about 4% of shares), signaling management confidence.
• The stock opened at $77.99 (up ~4.9% on the day), has a market cap of $2.63B and a P/E of 9.9, and is heavily institutionally owned (about 89%).

Customers Bancorp (NYSE:CUBI - Get Free Report) had its price objective lifted by Hovde Group from $80.00 to $86.00 in a research report issued on Tuesday. The firm currently has a "market perform" rating on the bank's stock. Hovde Group's price objective indicates a potential upside of 10.27% from the company's current price.

Several other analysts have also recently issued reports on the stock. Raymond James Financial reissued a "strong-buy" rating and set a $95.00 price objective on shares of Customers Bancorp in a research note on Tuesday, January 6th. Maxim Group set a $100.00 price objective on shares of Customers Bancorp in a research note on Monday, January 26th. B. Riley Financial reissued a "buy" rating on shares of Customers Bancorp in a research note on Monday, January 26th. Morgan Stanley lowered their price objective on shares of Customers Bancorp from $92.00 to $83.00 and set an "equal weight" rating for the company in a research note on Tuesday, March 31st. Finally, Zacks Research cut shares of Customers Bancorp from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, March 10th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, Customers Bancorp has an average rating of "Moderate Buy" and a consensus price target of $87.50.

Customers Bancorp Stock Up 4.9%

CUBI stock opened at $77.99 on Tuesday. The stock has a market capitalization of $2.63 billion, a P/E ratio of 9.90 and a beta of 1.57. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.01 and a current ratio of 1.01. Customers Bancorp has a one year low of $48.63 and a one year high of $82.56. The company has a 50 day moving average price of $70.95 and a two-hundred day moving average price of $71.54.

Customers Bancorp (NYSE:CUBI - Get Free Report) last released its earnings results on Thursday, April 23rd. The bank reported $1.97 EPS for the quarter, topping the consensus estimate of $1.88 by $0.09. The firm had revenue of $225.40 million during the quarter, compared to analysts' expectations of $223.51 million. Customers Bancorp had a net margin of 18.63% and a return on equity of 14.12%. Customers Bancorp's revenue for the quarter was up 57.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.54 EPS. As a group, sell-side analysts expect that Customers Bancorp will post 8.35 EPS for the current year.

Customers Bancorp announced that its Board of Directors has authorized a share repurchase program on Wednesday, February 11th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the bank to repurchase up to 4% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Institutional Trading of Customers Bancorp

Institutional investors have recently added to or reduced their stakes in the business. Access Investment Management LLC boosted its position in Customers Bancorp by 15.7% during the 3rd quarter. Access Investment Management LLC now owns 132,415 shares of the bank's stock worth $8,656,000 after purchasing an additional 18,000 shares during the period. Principal Financial Group Inc. lifted its holdings in Customers Bancorp by 23.4% in the 3rd quarter. Principal Financial Group Inc. now owns 179,762 shares of the bank's stock worth $11,751,000 after buying an additional 34,081 shares in the last quarter. EJF Capital LLC acquired a new position in Customers Bancorp in the 3rd quarter worth $1,711,000. Allspring Global Investments Holdings LLC lifted its holdings in Customers Bancorp by 5.8% in the 4th quarter. Allspring Global Investments Holdings LLC now owns 421,852 shares of the bank's stock worth $31,428,000 after buying an additional 23,129 shares in the last quarter. Finally, Fortress Investment Group LLC acquired a new position in Customers Bancorp in the 3rd quarter worth $2,860,000. 89.29% of the stock is owned by hedge funds and other institutional investors.

About Customers Bancorp

Customers Bancorp, Inc NYSE: CUBI is a bank holding company headquartered in Phoenixville, Pennsylvania, and the parent of Customers Bank, a federally chartered institution. The company offers a full suite of commercial and consumer banking services, combining traditional deposit and lending products with modern digital banking platforms. As a publicly traded entity, Customers Bancorp focuses on delivering tailored financial solutions to mid‐market companies, small businesses, professionals and individuals across the United States.

Through its commercial banking division, the company provides term loans, lines of credit, real estate financing, asset‐based lending and treasury management services.

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