Is Synovus Financial (SNV) Undervalued? A Fresh Look at the Bank’s Current Valuation

Synovus Financial (SNV) shares have been on the move, showing a 7% gain over the past month after a period of mixed performance. Investors are keeping an eye on how recent trends could influence the bank’s valuation.

See our latest analysis for Synovus Financial.

After a bumpy start to the year, Synovus Financial has regained momentum with a recent 7% lift in its share price over the past month, trading at $48.77. While the 1-year total shareholder return is still down by 12%, long-term investors have seen a solid 79% gain over five years. This reflects a business that can rebound and deliver meaningful results across cycles.

If strong recoveries and evolving opportunities appeal to you, now is a great time to broaden your watchlist and discover fast growing stocks with high insider ownership

With shares still trading below analyst price targets and steady earnings growth, is Synovus Financial currently undervalued, or has the market already anticipated the bank’s future potential? Is this a hidden opportunity, or is everything priced in?

Synovus Financial’s consensus fair value has been set at $56.14, which sits notably above its recent closing price of $48.77. With a discount rate of 7.04%, this latest narrative indicates that expectations for future growth and margins leave share prices with room to run, should those forecasts materialize.

“Bullish analysts maintain Buy or Outperform ratings while noting Synovus’s solid quarterly performance, including lower loan loss provisions and improvement in core revenue trends. These factors support their positive outlook.”

Read the complete narrative.

Want a peek at the numbers fueling this gap between value and price? The full narrative holds the key assumptions behind its bullish scenario, including changing profit margins, falling share counts, and a certain profit multiple that is not set in stone. Curious where the optimism comes from? Unlock the logic driving this fair value jump.

Result: Fair Value of $56.14 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, ongoing exposure to commercial real estate and potential challenges in merger execution could quickly shift the outlook and introduce fresh risk to Synovus’s story.

Find out about the key risks to this Synovus Financial narrative.

If you see the story differently, or want to dig deeper into the numbers, you can explore the data and write your own narrative in just a few minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Synovus Financial.

Smart investors never settle for the obvious picks. Expand your strategy by uncovering overlooked stocks and bold opportunities with these hand-picked screens from Simply Wall Street.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SNV.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com