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Bard analyst David George upgraded Associated Banc-Corp’s (NYSE:ASB) stock to Outperform from Neutral on Tuesday as it trades under tangible book value, making it an attractive risk-reward profile.
On the fundamentals front, George pointed out that the lender’s new management team, since taking over about two years ago, is exceeding expectations in terms of loan growth.
“We also expect ASB to benefit from loan re-pricing, with ~69% of total re-pricing or maturing in the next 12 months and spreads widening on top of the higher rate environment,” he wrote in a note.
Also, the company’s capital levels are healthy and its credit quality is expected to stay solid.
The Outperform rating, meantime, diverges from the SA Quant system rating and the average Wall Street analyst rating, both at Hold.
