Magazine article American Banker

Silicon Valley Prospects Are Starting to Look Good

Magazine article American Banker

Silicon Valley Prospects Are Starting to Look Good

Article excerpt

Like the emerging technology businesses to which it caters, Silicon Valley Bancshares finally appears to be recovering from the dot-com hangover.

On Thursday the Santa Clara, Calif., company shed its last remaining "sell" rating as Friedman, Billings, Ramsey & Co. analyst Gary Townsend raised it from "underperform" to "market perform," the equivalent of a "hold."

And though he said he is still skeptical of the $4.5 billion-asset company's model and its prospects for 2004, Mr. Townsend said macroeconomic factors -- including the possibility that interest rates will rise -- seem to favor it.

"We think that its prospects have improved," he said.

He explained the "hold" rating by saying, "We see things moving in the right directions, without things being effervescent."

Silicon Valley's shares closed up 3% Thursday.

Many observers are beginning to view Silicon Valley more favorably. Despite reporting a fourth-quarter loss of $15 million, or 42 cents a share, last week -- the result of an impairment charge on its investment banking unit Alliant Partners -- the 20-year-old company is rated "buy" or "hold" by all analysts who cover it.

Frederick Cannon of Keefe, Bruyette, & Woods Inc., who initiated coverage of Silicon Valley in November with an "outperform," or "buy," said it appears to be on the mend.

"I look at their deposit growth, which began to pick up in the second quarter and accelerated in the fourth quarter," Mr. Cannon said. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.