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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details