Initiations
Raymond James analyst William Wallace initiated coverage of Martinsville, Va.-based Carter Bank & Trust, describing the bank as a "turnaround story."
While the bank's profitability has been pressured in recent years, Wallace believes its new management, most of whom joined the bank within the past two years, is positioning to deliver meaningful profitability improvements. The analyst also sees more upside potential if the bank remixes the deposit base, optimizes its branch network and works through remaining problem assets, he wrote.
The analyst initiated coverage of the company with an "outperform" rating and a price target of $22. His EPS estimates are $1.10 for 2019 and $1.35 for 2020.
_______________________________________
D.A. Davidson analyst David Bishop initiated coverage of Bridgehampton, N.Y.-based Bridge Bancorp Inc., citing a strong branch footprint and deposit base.
Bridge Bancorp's deposit base has led to a low cost of deposits and net interest margin above its peers' average, according to Bishop. The bank also benefits from getting 13% of its revenue from fees, compared to a peer average of 9%, and the analyst wrote that he sees that growing further.
However, Bishop does expect loan growth to slow as a result of a competitive market and less profitable loan origination.
The analyst initiated coverage of the company with a "neutral" rating and a price target of $33. His EPS estimates are $2.46 for 2019 and $2.65 for 2020.
