Berkshire Hills Bancorp (NYSE:BHLB) drifted down 1.8% on Monday late morning trading after Janney downgraded the Boston, Massachusetts-based lender to Neutral from Buy as analyst Jake Civiello believes its “valuation has returned to an appropriate level, following more than 20% increase in shares since July 1.”
The downbeat coverage comes after Berkshire Hills (BHLB) last week posted better-than-expected Q2 results, which Civiello called “decent.” He noted that his 2025 EPS estimate is trailing the Wall Street consensus of $2.41 (+12.3% Y/Y), as we take a more conservative approach on credit. The current negatively sloped yield curve has been “the largest impediment” to BHLB’s earnings growth in recent years, the analyst wrote in a note. The Neutral rating compares with the SA Quant system rating of Hold and the average sell-side analyst rating of Buy.
Source: http://seekingalpha.com/news/4126341-berkshire-hills-bancorp-lowered-to-neutral-at-janney-after-recent-rally#source=first_level_url%3Amarket-news%7Csection_asset%3Amain
Footnotes:
– http://seekingalpha.com/symbol/BHLB
– https://seekingalpha.com/news/4125414-berkshire-hills-bancorp-gaap-eps-of-0_57-beats-0_06-revenue-of-108_66m-beats-5_18m
– https://seekingalpha.com/symbol/BHLB/ratings/quant-ratings
– https://seekingalpha.com/symbol/BHLB/ratings/sell-side-ratings
