Disclosures

City National Corporation

Disclosure

  • B. Riley & Co., LLC does and seeks to do business with companies covered in its research reports.
  • A portion of this analyst’s compensation is based on the sales, trading and investment banking activities of B. Riley & Co., LLC.
Disclosure Chart

Initiated Coverage on 9/21/09 with "Neutral" Rating and Price Target of $42.50

Ratings Distribution as of May 20, 2013 % with Investment Banking Relationships
Rating Number of Companies Percent of Total Rating Number of Companies Percent of Total
Buy 120 58.8% Buy 7 100.0%
Neutral 78 38.2% Neutral 0 0.0%
Sell 6 2.9% Sell 0 0.0%
Total 204 100% Total 7 100%

Explanation of B. Riley & Co. LLC's Rating System

  • Buy: We generally expect "Buy" rated stocks to materially outperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly attractive.
  • Neutral: We generally believe "Neutral" rated stocks will perform roughly in line with the S&P 500 and Russell 2000 over the intermediate and long term.
  • Sell: We generally expect "Sell" rated stocks to materially underperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly unattractive.

Risks and Considerations

  • Acquisition/Integration - The Company recently completed acquisition(s). If the Company fails to successfully integrate the acquisition, the deal may lead to disappointing returns.
  • Further Potential Risks - See the Company's SEC filings, particularly its 10-K filing, for a discussion of further potential risks.

Additional Risks and Considerations

     

     

    • Economic Slowdown – The economic recession continues to drive increases in unemployment and this, in turn, could affect asset quality and loan demand. The weak economy has had a big impact on state economies and California has had well-publicized budget woes. Government responses to the recession, both at the federal and state level, could affect City National’s business and affluent individual customer base.
    • Sector Rotation – After enjoying a strong rebound in recent months, the banking sector could suffer from another round of profit taking amid fears that the industry will have a long road back to healthy profitability. Valuations on bank stocks have gyrated wildly in during the financial crisis of the past few years. This trend could have further to go and could last for an extended period.