Northwest Bancshares initiated with a Buy at Truist

Truist initiated coverage of Northwest Bancshares (NWBI) with a Buy rating and $15 price target implying 27% total return over the next twelve months. Northwest is going through a thrift like balance sheet to commercial bank transition, the analyst tells investors in a research note. The firm says the shares are trading at 1.25-times tangible book value with a 6.5% dividend yield. Investors are therefore “buying a bond and getting the equity call option for free,” contends Truist.