Eagle Is “undervalued and priced for low-to-mid teens total returns”

A reader passed along a thoughtful article on Eagle Bancorp (EGBN) at Seeking Alpha.

Here’s the conclusion, but I recommend reading the whole thing:

Eagle has a strong performance track record in the D.C. area, and I continue to view that as an attractive market for a CRE-oriented commercial bank. D.C.’s construction market has historically offered respectable (if not good) growth, with less cyclicality than most other markets, as the presence of the government effectively supports the market. While Eagle isn’t shockingly cheap today, I do like the long-term prospects for mid-single-digit loan growth and mid-to-high single-digit core earnings growth, with M&A a possible source of upside as well.

Posted by on January 21st, 2020 at 11:08 am


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