On Jun 29, Zacks Investment Research upgraded SY Bancorp Inc.
(SYBT - Snapshot Report
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
SY Bancorp has been witnessing rising earnings estimates due to the completion of an acquisition, and better-than-expected first-quarter results. Moreover, this regional bank has a long-term earnings growth forecast of 10.0%.
On May 1, SY Bancorp announced the closure of a deal to acquire La Grange, Ky.-based THE BANCorp, Inc. The deal, announced in Dec 2012, increased the company’s footprint to 35 branches in 3 major metropolitan areas of Louisville, Indianapolis and Cincinnati. The cash-and-stock transaction is valued at roughly $19.9 million.
Additionally, in Apr 2013, SY Bancorp announced its first-quarter earnings of 49 cents per share, surpassing the Zacks Consensus estimate by nearly 9%. Results were driven by almost stable net interest and non-interest revenues, partially offset by a rise in operating expenses.
Notably, out of the past 4 quarters, SY Bancorp delivered positive earnings surprise in 2 quarters, while reporting in-line results for the other 2 quarters, with average beat of 6.6%. Moreover, during the last 60 days, the Zacks Consensus Estimate for 2013 increased 1.1% to $1.90 per share. For 2014, the Zacks Consensus Estimate has remained stable at $1.81 per share over the same time period.
Positive earnings surprises, along with favorable estimate revisions made way for the rank upgrade.
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