J.P. Morgan Discusses Meeting with City National's CFO (CYN)

After a series of investor meetings with Chris Carey, City National Corporation (NYSE: CYN)'s Chief Financial Officer, analysts at J.P. Morgan issued their sentiments on the company.

Altogether, they said the "tone from management was generally positive." They believe that the worst of the credit pressure is behind the company and "several unique portfolios should contribute to a generally low level of NCOs/provisions in a more normal environment." JP cited CYN's pursuit of cheap deposits through FDIC deals as a reason to be optimistic about its profits. Moreover, they believe that CYN will be able to "take advantage of a recovery in traditional [mergers and acquisitions]."

This should propel earnings per share to $5.75, in the view of the analysts. They maintained their Overweight rating, stating that "CYN shares trade at 10.0x our normalized EPS estimate of $5.75, which is in line with peers." With risks posed by regulatory reform low and earnings potential from mergers and acquisitions relatively high, J.P. Morgan thinks "the shares are a bargain."