Stephen Scouten, an analyst from Piper Sandler, has initiated a new Hold rating on United Bankshares (UBSI).
Stephen Scouten has given his Hold rating due to a combination of factors that influence United Bankshares’ current and future performance. The bank demonstrates strong profitability metrics, such as a high return on average assets and return on tangible common equity, which are above peer medians. Its strategic acquisition of Piedmont Bancorp is expected to enhance its market presence in the Southeastern U.S., aligning with its growth strategy through mergers and acquisitions.
However, Scouten notes that concerns related to the D.C. metropolitan statistical area (MSA) could limit the bank’s potential for outperformance in the near term. Despite these concerns, UBSI’s focus on operational efficiency, disciplined underwriting, and a robust dividend history provide a solid foundation for income generation. The bank’s consistent dividend increases and strategic market expansions suggest potential for future upside, but current regional uncertainties warrant a cautious approach, justifying the Hold rating.
In another report released on March 3, KBW also maintained a Hold rating on the stock with a $45.00 price target.
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