Customers Bancorp falls after Wedbush downgrades to 'neutral'

Customers Bancorp

24/09/2024 15:06

** Shares of regional lender Customers Bancorp  CUBI.N  fall
as much as 3.1%, last down 2.1% at $45.99 in early trading
    ** Wedbush downgrades CUBI to "neutral" from "outperform";
cuts PT to $53 from $79, which still represents a 12.8% upside
to stock's last close
    ** Brokerage says CUBI may face expense headwinds in light
of the U.S. Federal Reserve's enforcement action in August
related to its digital asset business
    ** Fed's action does not come with a fine, but directs the
bank to overhaul its policies to address shortcomings
    ** Wedbush doesn't expect CUBI to be forced to divest the
digital asset business, but expects expenses to be elevated in
the near- and medium-term driven by new hires and consulting
costs
    ** Six of 10 brokerages rate the stock "buy" or higher and
four "hold"; their median PT is $65 - LSEG data
    ** As of last close, CUBI shares down 18.4% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))