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- Synovus Financial (NYSE:SNV) stock climbed 3.3% in Monday morning trading after Barclays upgraded the stock to Overweight from Equalweight on the premise that the work the bank started a year ago to strengthen its capital and earnings is mostly complete.
- The company has taken several steps, including the sale of a medical office loan portfolio, reducing commercial real estate originations, optimizing risk-weight assets, and restructuring its securities portfolio.
- With those moves and the anticipated benefit to net interest income from the securities reinvestment, Barclays analyst Jared Shaw increased EPS estimates for Synovus (SNV) — for 2024, to $4.04 from $3.75; for 2025, to $4.89 from $4.50; and for 2026, to $5.76 from $5.56.
- “As a result of the work done over the past 12 months, SNV is now better positioned to benefit from its strong markets to see a step-up in profitability,” Jared Shaw wrote in a note to clients.
- Barclays’ Overweight rating on Synovus (SNV) contrasts with the SA Quant rating of Hold and aligns with the average Wall Street raing of Buy.