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11 US bank stocks trading at least 20% below analyst price targets

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11 US bank stocks trading at least 20% below analyst price targets

As of Sept. 11, 11 U.S. bank and thrift stocks were trading at least 20% below analysts' mean one-year price targets.

Wyomissing, Pa.-based Customers Bancorp Inc. was trading 29.7% below its mean one-year price target on Sept. 11, the largest discount in the industry among major exchange traded banks and thrifts. Half of the six analysts covering Customers have a buy recommendation, and the company's shares have lost 16.5% over the last 12 months.

Since S&P Global Market Intelligence's last report at the end of May, Customers' shares have returned 4.3%, trailing the S&P 500's 9.7% return and the SNL U.S. Bank and Thrift index's 10.1% return.

Puerto Rico-based First BanCorp. had the second-largest discount to analyst targets at 28.8% as of Sept. 11. The company's shares have returned 19.2% over the last year, compared to a median 10.7% loss for the rest of the industry. Five of the six analysts covering the company recommend buying the stock.

Meanwhile, just over 30 bank and thrift stocks were trading above analysts' mean one-year price target as of Sept. 11.

Abilene, Texas-based First Financial Bankshares Inc. was trading 15.5% above its one-year price target, the largest premium in the sector. The bank's shares have returned 8.4% over the last 12 months, and none of the six analysts covering the company currently has a buy recommendation.

In this analysis, S&P Global Market Intelligence considered major exchange-traded U.S. bank and thrift stocks trading in relation to mean one-year analyst price targets as of Sept. 11. Only stocks covered by at least three analysts and trading above $5 per share at Sept. 11 were included.

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