John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Enterprise Bancorp Is An Undervalued Bank With No Analyst Coverage

Key takeaways

  • Enterprise Bancorp (NASDAQ:EBTC) trades at an attractive valuation as investors are slow to price in the transition from net interest margin (NIM) compression to stabilization due to the fact that rates have been so low for so long.
  • However, EBTC can grow regardless of the rate environment due to its large and growing low cost deposit base as well as strong local market share.
  • Its investment advisory division is a hidden asset while an increase in M&A activity involving small cap regional banks should provide a valuation floor.

Company overview

EBTC offers commercial and consumer loan products, deposit and cash management products as well as investment advisory, wealth management and insurance services. The primary market area...

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