Keefe, Bruyette & Woods on Tuesday upgraded Synovous Financial (NYSE: SNV) to Outperform based on recent pullback in the shares.
KBW analyst Jefferson Harralson said that after a 46 percent return in 2013, Synovous shares have been pulled back by more than nine percent this year, a little more than the KBW Regional Bank Index's eight percent.
Harralson views the magnitude of the pullback in Synovous shares as unwarranted, thus creating another opportunity for investors to enter the fray at a much lower multiple.
Harralson advised investors to be patient and wait to see the one percent return on asset, which Harralson believes will be a likely mid-2016 event. Harralson views Synovous to be sitting in a nicely-asset sensitive position, and an improvement in the rate environment will be a plus for Synovous.
Synovous shares are up almost two percent to $23.85.
- Benzinga's Top Upgrades
- UPDATE: Morgan Stanley Upgrades Synovus Financial As Prior Rating Has Played Out
- Synovus Plans Reverse Stock Split - Analyst Blog
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.