Wells Fargo analyst Timur Braziler has reiterated their bullish stance on BKU stock, giving a Buy rating yesterday.
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Timur Braziler has given his Buy rating due to a combination of factors including BankUnited’s strong quarterly performance and promising financial metrics. The bank demonstrated impressive growth in demand deposit accounts (DDA), which was the highest in its group, and a notable expansion in net interest margin (NIM). These factors, along with a $100 million stock buyback program, are expected to accelerate the bank’s return on tangible common equity (ROTCE) to over 10%.
Despite a rise in non-performing loans (NPLs), which was the main downside, the management remains optimistic about managing these credit issues. The potential for mergers and acquisitions (M&A) also presents a significant upside for BankUnited. Additionally, the bank’s attractive valuation and strong deposit base, particularly in Florida, make it a compelling investment opportunity. The upcoming CFO transition is not expected to hinder these positive prospects.
Braziler covers the Financial sector, focusing on stocks such as Popular, BankUnited, and First Horizon. According to TipRanks, Braziler has an average return of 6.2% and a 57.59% success rate on recommended stocks.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $44.00 price target.