JPMorgan Sees Significant Upside Potential in Midwestern Bank
JPMorgan's Anthony Elian has initiated coverage on UMB Financial Corporation (NASDAQ:UMBF) with an Overweight rating and a price forecast of $180.
Elian notes that UMB has grown into a top-25 US bank, boasting over $72 billion in assets across ~200 branches in the Midwest, Southwest, and West.
The analyst highlights the company's diversified platform, which spans commercial and consumer banking, private wealth, and institutional banking, complemented by growing fee-based businesses.
Elian expects normalized loan and deposit growth in the high-single-digit range, above the industry average of mid-single digits.
He also points out that UMB's loan-to-deposit ratio is approximately 70%, giving the bank flexibility to grow loans even if deposit growth slows.