Synovus Financial (SNV): Revisiting Valuation After a Recent 10.6% One-Month Share Price Rebound
Synovus Financial (SNV) has been quietly grinding higher, with shares up about 11% over the past month even as 1 year returns remain negative, a setup value oriented bank investors often watch closely.
See our latest analysis for Synovus Financial.
The recent 10.6% one-month share price return has mainly been a catch-up move for Synovus, as the stock is still slightly down year to date while long-term total shareholder returns remain very strong.
If Synovus has you rethinking where the next opportunity might come from, this could be a good moment to broaden your search with fast growing stocks with high insider ownership.
With earnings still growing, shares trailing their highs, and the stock trading at a sizable intrinsic value discount, is Synovus quietly offering a fresh entry point, or are investors already paying up for its future growth?
Most Popular Narrative Narrative: 11.8% Undervalued
With Synovus Financial's most followed narrative implying a fair value of $56.14 against a last close of $49.52, the gap in expectations is hard to ignore and sets up a very specific growth and profitability story.
Strong and improving credit quality, paired with disciplined expense management and operational leverage, are supporting margin expansion and profitability, suggesting that current valuations may not reflect ongoing improvements to net income and return on assets.
Curious what kind of revenue trajectory and profit margins need to hold for that valuation to work? Wondering how earnings power and share count shape the upside? Want to see the exact assumptions behind that projected earnings climb and future multiple?
Result: Fair Value of $56.14 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, that upside case depends on Synovus navigating Southeast regional concentration and commercial real estate exposure without a sharper credit or earnings hit.
Find out about the key risks to this Synovus Financial narrative.
Build Your Own Synovus Financial Narrative
If you see things differently or would rather dig into the numbers yourself, you can build a complete view in minutes: Do it your way.
A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Synovus Financial.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Synovus Financial might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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