First Republic Bank (FRC)
Report on 12/04/2022 - bank
BUY - 156-158
TP - 192
SL - 143
This is the case when I had to spend a lot of time finding the reason of price decrease of 25% since the last quarterly report. So, to my mind, the main reasons were following:
⛔️Change in management. Previous CEO left the company due to health reasons followed by the leave of most probable successor.
⛔️Net interest margin decrease (2,73%—>2.68%)
⛔️Global correction in equity market in 1Q2022;
⛔️P/E is above industry average.
Now to positive factors:
✅organic and steady growth of business and key ratios
✅safe credit portfolio
✅FRC has beaten quarterly analysts' forecasts on revenue and EPS !!!10 quarters in a row
✅Adjustment of 1Q2022 forecasts by analysts to the top last month, which in the majority of cases is followed by the beat of the consensus.
What concerns technical side, on the daily timeframe the price is on the strong support line, from which I do expect the trend to reverse.
#FRC
Report on 12/04/2022 - bank
BUY - 156-158
TP - 192
SL - 143
This is the case when I had to spend a lot of time finding the reason of price decrease of 25% since the last quarterly report. So, to my mind, the main reasons were following:
⛔️Change in management. Previous CEO left the company due to health reasons followed by the leave of most probable successor.
⛔️Net interest margin decrease (2,73%—>2.68%)
⛔️Global correction in equity market in 1Q2022;
⛔️P/E is above industry average.
Now to positive factors:
✅organic and steady growth of business and key ratios
✅safe credit portfolio
✅FRC has beaten quarterly analysts' forecasts on revenue and EPS !!!10 quarters in a row
✅Adjustment of 1Q2022 forecasts by analysts to the top last month, which in the majority of cases is followed by the beat of the consensus.
What concerns technical side, on the daily timeframe the price is on the strong support line, from which I do expect the trend to reverse.
#FRC