United Community Banks (UCB) PT Raised to $41 at Keefe, Bruyette & Woods

Keefe, Bruyette & Woods analyst Catherine Mealor raised the price target on United Community Banks (NYSE: UCB) to $41.00 (from $40.00) while maintaining an Outperform rating.

The analyst commented: "Last week, UCB announced a strategic HTM restructure following the Navitas portfolio sale (9/1 close). This transaction brings ~10% standalone TBV dilution, but is partially offset by the Navitas gain and helps to backfill lost Navitas earnings (HERE), and ultimately maximizes UCB’s two underlying goals: 1) reduce risk (i.e. Navitas credit, IRR risk from HTM), and 2) increase balance sheet flexibility (75% L/D ratio). We like the strategic alignment of the two transactions, neutralizing the impact of Navitas and layering timely liquidity to better defend NIM and fuel growth in an increasingly competitive southeast."

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