Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Triumph Bancorp Are Rising Today

By Bram Berkowitz - Apr 5, 2021 at 11:23AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An analyst recently upgraded the stock and the price target, offering significant potential upside.

What happened

Shares of Triumph Bancorp (TBK -2.64%), a nearly $6 billion asset bank based in Dallas, Texas, traded more than 11% higher in the late morning Monday after an analyst upgraded its stock.

So what

Analysts at B. Riley Financial upgraded Triumph from a neutral rating to a buy rating today. Analysts at B. Riley also increased their price target from $85 per share to $110 per share, giving the stock potential upside of 34.7%.

Picture of building with the word bank on it.

Image source: Getty Images.

Other analysts have also been jumping on the bull train lately. Raymond James recently upgraded the stock and raised its price target to $111 per share, while Wells Fargo increased its price target from $42 per share to $73 per share.

Now what

Triumph Bancorp was one of the top-performing bank stocks in 2020, actually growing its earnings from 2019, which was rare in the industry. The bank did benefit from the mortgage boom, but is also a specialized lender in the transportation industry.

Triumph offers a lending product called factoring, which provides working capital to businesses by essentially using customer invoices as collateral. This specialized financial product comes with attractive returns.

Currently trading close to $91 per share, Triumph trades at an extremely high valuation of roughly 460% of tangible book value. But being in this niche lending business, it has an advantage over other banks, which is why I still like the company and agree with analysts.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Triumph Bancorp, Inc. Stock Quote
Triumph Bancorp, Inc.
$63.82 (-2.64%) $-1.73

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.