Vivek KumarJune 9, 2021, 11:48 PM·3 min read
Morgan Stanley raised their stock price forecast on First Republic Bank to $180 from $175 and raised its earnings per share estimates to $7.33 on stronger deposit growth and faster security purchases.
In April, the bank’s first-quarter earnings came in at $1.79 per share, beating the Wall Street consensus estimates of $1.55 per share. The First Republic Bank posted revenues of $1.13 billion, up from $916.18 million seen in the same period a year ago.
“First Republic appears on track to continue its 20% annual loan growth and pristine credit quality for years to come. Raising our EPS estimates on stronger deposit growth and faster security purchases.
We remain Equal-weight, however, given its lofty valuation multiple of 23.9x our 2022e EPS,” noted Ken Zerbe, equity analyst at Morgan Stanley.
“We are increasing our EPS estimates for First Republic by 1.9% in 2021 (from $7.19 to $7.33) and by 2.5% in 2022 (from $7.96 to $8.16). The...read more...