South Atlantic Bancshares upgraded to Buy at Janney following 17% pullback

As previously reported, Janney Montgomery Scott analyst John Rodis upgraded South Atlantic Bancshares (SABK) to Buy from Neutral with an unchanged $19 fair value estimate based on valuation. Since November 19, when the firm had previously lowered its rating, shares are down 17%, although fundamentally “nothing has changed with the SABK story,” the analyst tells investors. South Atlantic currently trades at 107% current tangible book value, compared to a peer median of 125% of TBV, and the firm believes shares should narrow this valuation gap and trade more in line with the peer group given the company’s solid fundamentals, above-average growth, and “attractive coastal South Carolina franchise,” the analyst tells investors.