Valens Equity Weekly Insights and Inflections for March 22, 2022
- HTLF (HTLF) has been expanding its scale, helping to improve ROE and drive significant equity growth. Uniform Accounting highlights the company’s operational improvements that the market is missing, indicating equity upside.
- HTLF has been acquiring banks to expand away from the Midwest and into the American West and Southwest. These banks are positioned in higher growth parts of the country, and the company’s larger scale has helped improve profitability that the market is not pricing in. As HTLF continues growing, it should be able to expand ROE and grow equity faster than the market realizes.
- HTLF’s management is aligned to focus on profitable growth and proper risk management, which should help focus them on their current expansion strategy, driving substantial equity growth and ROE expansion.
- We are adding HTLF to Valens’ Conviction Long Idea List as a result