The Market Underestimates TriState Capital

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About: TriState Capital Holdings, Inc. (TSC)
by: Invest With Discipline
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Invest With Discipline
CFA, research analyst, SMID-cap, ETF investing
Summary

TSC is trading near its 5-year lows based on it fwd P/E multiple; the market underestimates TSC’s growth potential.

Management recently provided guidance of 15-25% of pre-tax income growth for 2019, and TSC’s stock should climb much higher if it reports results that match estimates.

Financial results are based predominately on earnings growth and not changes in the yield curve, as TSC is “interest-rate neutral.”.

An expansion of interest margin and potential unexpected contributions from its investment management business provide further upside from current estimates.

Investment Thesis

TriState Capital Holdings (NASDAQ:TSC) is a regional bank with an impressive growth trajectory. What makes TSC unique is its focus (and ability) to grow earnings organically, as opposed to focusing on