PacWest Bancorp Is Currently Quite Cheap

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About: PacWest Bancorp (PACW)
by: Sheen Bay Research
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Sheen Bay Research
Research analyst, macro, ETF investing, banks
Summary

Earnings expected to decline 6% due to an anticipated squeeze in net interest margin. The pressure on margin is attributable to Fed's rate cuts and asset sensitive balance sheet.

Quarterly dividends are expected to be maintained at $0.6 per share which results in a high dividend yield of 6.57%.

Double digit price upside is expected in the next one year.

PacWest Bancorp's (PACW) earnings are likely to decline next year mostly due to expected pressure on net interest margin that will be worsened by the high proportion of variable loans in PACW's total