Janney upgrades ‘undervalued’ Citizens Financial Services to Buy

As previously reported, Janney Montgomery Scott analyst Jake Civiello upgraded Citizens Financial Services to Buy from Neutral with a $53 fair value estimate. Citizens recorded core EPS that missed the firm’s forecast due to continued net interest income weakness, while higher-cost funding remains a drag on margins and end-of-period loans declined in part due to seasonal factors, noted the analyst. However, Citizens is trading at a discount multiple to not only tangible book value per share, but also to the peer group, for the first time in over 10 years, added the analyst, who believes shares are undervalued.