Provident Financial rises after D.A. Davidson upgrades to 'buy'

Lakeland Bancorp

22/04/2024 16:01

** Shares of community bank Provident Financial Services
 PFS.N  rise as much as 5.8%, last up 5.3% at $15.23
    ** D.A. Davidson upgrades PFS to "buy" from "neutral";
raises PT to $20 from $5, a 38.3% upside to the last close
    ** Brokerage says with its Lakeland Bancorp  LBAI.O  deal
now approved, PFS becomes an attractive bank trading at a cheap
valuation
    ** Earlier this month, the Federal Reserve Board approved
the acquisition of Lakeland Bancorp by Provident Financial 
    ** Brokerage adds that the strategic fit remains compelling
given the significant branch overlap between the two banks in
Northern and Central New Jersey and complimentary business lines
    ** In 2022, PFS had agreed to buy LBAI in an all-stock deal
valued at $1.3 bln 
    ** Deal was initially expected to close in the second half
of 2023 but got delayed due to pending regulatory approvals
    ** Three of five brokerages rate the stock "buy" and two
"hold"; their median PT is $19 - LSEG
    ** As of last close, PFS shares down 19.8% YTD

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