UMB Financial rises after Morgan Stanley starts coverage at 'overweight'

UMB Financial

21/11/2024 18:46

** Shares of regional lender UMB Financial  UMBF.O  rise as
much as 3.8%; last up 3% at $123.82
    ** Morgan Stanley starts coverage of UMBF with "overweight"
rating and street-high PT of $156, a 30% upside to stock's last
close
    ** Brokerage says UMBF is one of the best ways to play lower
rates among the mid-cap U.S. banks, as its differentiated
deposit base drives peer-leading net interest margin (NIM)
expansion
    ** NIM is a key measure of banking profitability
    ** UMBF has a collection of institutional businesses that
generate deposits, which reprice quickly with short-term
interest rates
    ** Brokerage also expects above-peer fee income growth,
driven by several tailwinds across the bank's trust & securities
processing business
    ** Seven of eight brokerages rate the stock "buy" or higher
and one "hold"; with the median PT of $130, according to data
compiled by LSEG
    ** As of last close, UMBF shares up 43.9% YTD

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