{"id":31015,"date":"2016-02-23T08:11:51","date_gmt":"2016-02-23T14:11:51","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=31015"},"modified":"2016-02-23T08:11:51","modified_gmt":"2016-02-23T14:11:51","slug":"wintrust-analysts-optimistic-despite-consistently-low-stock-price","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\/","title":{"rendered":"Wintrust Analysts Optimistic Despite Consistently Low Stock Price"},"content":{"rendered":"<p><strong>By Katie Murar<\/strong><\/p>\n<p class=\"dropcap\">Analysts maintain a positive outlook for Illinois bank holding company Wintrust Financial Corp. despite its lower-than-expected fourth-quarter earnings released last month and consistently low stock price.<\/p>\n<p>\u201cLoans were up almost 5 percent which is better than expected, and credit quality was also good,\u201d John Rodis, senior vice president and research analyst for Fig Partners LLC, said. \u201cAs far as their future, they\u2019re going to be fine. You will continue to see them grow in Chicago and take market share and you\u2019ll continue to see them do some smaller, one-off acquisitions.\u201d<\/p>\n<p><!--more--><\/p>\n<p>Despite high operating expenses driving a lower-than-expected margin, Wintrust will overcome challenges in 2016 due to its strong loan growth and solid credit quality, Rodis said.<\/p>\n<h1>Wintrust Stock Price, 2014-2016<\/h1>\n<figure id=\"attachment_31036\" aria-describedby=\"caption-attachment-31036\" style=\"width: 1823px\" class=\"wp-caption alignnone\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-31036\" src=\"http:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/Picture1.png\" alt=\"Lower-than-expected fourth-quarter earnings caused Wintrust shares to drop in 2016. (Katie Murar\/MEDILL)\" width=\"1823\" height=\"700\" srcset=\"https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/Picture1.png 1823w, https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/Picture1-300x115.png 300w, https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/Picture1-768x295.png 768w, https:\/\/news.medill.northwestern.edu\/chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/Picture1-1024x393.png 1024w\" sizes=\"(max-width: 1823px) 100vw, 1823px\" \/><figcaption id=\"caption-attachment-31036\" class=\"wp-caption-text\">Lower-than-expected fourth-quarter earnings caused Wintrust shares to drop in 2016. (Katie Murar\/MEDILL)<\/figcaption><\/figure>\n<p>On Feb. 18, Wintrust shares closed at $40.61. Its 52-week high was $55.79 and its low was $37.96.<\/p>\n<p>Analysts set the 12-month target price at $48.44, and the consensus\u00a0of\u00a02016 earnings per share\u00a0is $3.67, compared with $3.10 last year. Thirty-three percent of analysts rate WTFC stock as \u201cbuy\u201d, and 66 percent rate it as \u201chold.\u201d<\/p>\n<p>Terry McEvoy, a senior analyst at Stephens Inc., said Wintrust will face challenges in 2016 related to the impetus for the stock drop, including expenses and growing revenue.<\/p>\n<p>\u201cWe have been seeing a decline in the manufacturing sector of Chicago for two months which can have an implication on their ability to grow commercial loans, or can trigger some weakness within their existing borrowers, which we\u2019re continuing to watch closely,\u201d McEvoy said.<\/p>\n<p>McEvoy also noted Wintrust\u2019s two-pronged growth strategy, which includes mergers and acquisitions as well as organic growth, as a unique approach that has proven successful in the past.<\/p>\n<p>\u201cWintrust has a proven track record of not only finding acquisition opportunities, but integrating those banks and then achieving the necessary cost saves,\u201d McEvoy said.<\/p>\n<p>\u201cOn the organic growth side, they put up almost $800 million of loan growth in the fourth quarter, and I think that the number will continue to be close to 300 per quarter. They will expand market share and commercial real estate within the Midwest, as well as growing their life insurance which is unique for Wintrust, but has been a nice area for growth.\u201d<\/p>\n<p>Wintrust Financial got its start as a community bank in suburban\u00a0Rosemont, Ill., before expanding in the Chicago metropolitan area and to southeastern Wisconsin. Wintrust now offers personal and commercial banking services for customers through 15 banking subsidiaries.<\/p>\n<p>McEvoy did not lower his price target of $56.00 for 2016, which he calls \u201cconservative\u201d to begin with, and said he sees a positive future for the company despite its year-long drooping\u00a0stock price and higher expenses.<\/p>\n<p>\u201cRelative to the banking industry, they have a positive year ahead,\u201d McEvoy said. \u201cI think they have demonstrated their ability to manage the company through different financial cycles, and I\u2019d like to think they are positioned for continued out-performance through ups and downs of the economic cycle.\u201d<\/p>\n<p>Stephens Inc. gives Wintrust Financial\u2019s shares an \u201coverweight\u201d rating, meaning the stock\u2019s total return is expected to be greater than the total return of the company\u2019s\u00a0banking sector over the next 12 months.<\/p>\n<p>In a statement by Raymond James following the earnings release, analysts reduced their target price from $59 to $52, but reiterated a \u201cstrong buy\u201d rating on the stock.<\/p>\n<p>\u201cWhile we are reducing our EPS estimates, the 5% decline in its share price on Tuesday was overdone, in our view, and our thesis remains intact,\u201d the statement said. \u201cWe believe Wintrust\u2019s strong growth profile and operating leverage will drive above-peer EPS growth. As a result, we believe its shares deserve a premium valuation.\u201d<\/p>\n<p>Analysts for Raymond James also asserted their confidence in Wintrust\u2019s ability to navigate troublesome economic times, thus allowing for \u201cmultiple premium finance portfolio acquisitions.\u201d<\/p>\n<p>\u201cGoing forward, we expect the bank to continue to gain market share and outgrow most of its peers,\u201d the statement said. \u201cWe expect Wintrust to produce substantial positive operating leverage, driving better-than-peer EPS growth.&#8221;<\/p>\n<div class=\"featurecaption\">Photo at top: Despite a consistently low share price, analysts say Illinois bank holding company Wintrust Financial Corp. will beat out competitors in 2016. (Katie Murar\/MEDILL)<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Katie Murar Analysts maintain a positive outlook for Illinois bank holding company Wintrust Financial Corp. despite its lower-than-expected fourth-quarter earnings released last month and consistently low stock price. \u201cLoans were up almost 5 percent which is better than expected, and credit quality was also good,\u201d John Rodis, senior vice president and research analyst for [&hellip;]<\/p>\n","protected":false},"author":223,"featured_media":31020,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[585],"tags":[],"class_list":["post-31015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-winter-2016"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Wintrust Analysts Optimistic Despite Consistently Low Stock Price - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wintrust Analysts Optimistic Despite Consistently Low Stock Price - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Katie Murar Analysts maintain a positive outlook for Illinois bank holding company Wintrust Financial Corp. despite its lower-than-expected fourth-quarter earnings released last month and consistently low stock price. \u201cLoans were up almost 5 percent which is better than expected, and credit quality was also good,\u201d John Rodis, senior vice president and research analyst for [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/news.medill.northwestern.edu\/chicago\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\/\" \/>\n<meta property=\"og:site_name\" content=\"Medill Reports Chicago\" \/>\n<meta property=\"article:published_time\" content=\"2016-02-23T14:11:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/medill.wordpress.offload\/WP%20Media%20Folder%20-%20medill-reports-chicago\/wp-content\/uploads\/sites\/3\/2016\/02\/IMG_6949-copy.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1100\" \/>\n\t<meta property=\"og:image:height\" content=\"825\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"kathrynmurar\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"kathrynmurar\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/news.medill.northwestern.edu\\\/chicago\\\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/news.medill.northwestern.edu\\\/chicago\\\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\\\/\"},\"author\":{\"name\":\"kathrynmurar\",\"@id\":\"https:\\\/\\\/news.medill.northwestern.edu\\\/chicago\\\/#\\\/schema\\\/person\\\/1251ae07d11c63a5d3499bb9ce49f527\"},\"headline\":\"Wintrust Analysts Optimistic Despite Consistently Low Stock Price\",\"datePublished\":\"2016-02-23T14:11:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/news.medill.northwestern.edu\\\/chicago\\\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\\\/\"},\"wordCount\":707,\"image\":{\"@id\":\"https:\\\/\\\/news.medill.northwestern.edu\\\/chicago\\\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/s3.amazonaws.com\\\/medill.wordpress.offload\\\/WP%20Media%20Folder%20-%20medill-reports-chicago\\\/wp-content\\\/uploads\\\/sites\\\/3\\\/2016\\\/02\\\/IMG_6949-copy.jpg\",\"articleSection\":[\"Winter 2016\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/news.medill.northwestern.edu\\\/chicago\\\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\\\/\",\"url\":\"https:\\\/\\\/news.medill.northwestern.edu\\\/chicago\\\/wintrust-analysts-optimistic-despite-consistently-low-stock-price\\\/\",\"name\":\"Wintrust Analysts Optimistic Despite Consistently Low Stock Price - 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