On Friday, Piper Sandler adjusted its price target on shares of Banner (NASDAQ:BANR) Corporation (NASDAQ:BANR), a bank holding company, reducing it to $51 from $54, while retaining an Overweight rating on the stock. This adjustment is based on revised earnings forecasts that reflect a slimmer margin outlook and a reduction in the size of the earning asset base, which is anticipated to lead to decreased net interest income (NII).
The firm has also factored in an expected improvement in noninterest income and a slight increase in expenses. These revisions have prompted a reduction in the earnings per share (EPS) estimates for Banner Corporation. The 2024 EPS forecast has been decreased by $0.25 to $4.40, which adjusts to a $0.16 reduction after considering non-core results from the first quarter. The 2025 EPS estimate has been trimmed by $0.20 to $4.80.
The new stock price target of $51 is based on an 11.6 times multiple of the revised 2024 EPS estimate, which remains unchanged from the previous multiple used by Piper Sandler. The adjustment in the price target reflects the changes in the company's financial outlook as projected by the firm.
Banner Corporation's stock performance and investor expectations will likely be influenced by these updated figures as the market absorbs the new information. The Overweight rating suggests that Piper Sandler continues to see the company's stock as a favorable investment despite the revised financial projections.
InvestingPro Insights
In light of the recent analysis by Piper Sandler, InvestingPro offers additional insights into Banner Corporation (NASDAQ:BANR) that may be valuable for investors. With a market capitalization of $1.54 billion and a P/E ratio that has slightly adjusted to 9.22, Banner Corporation presents a picture of relative value in the banking sector.
Notably, the company's commitment to shareholder returns is evident with a high shareholder yield and a track record of 30 consecutive years of dividend payments, currently offering a dividend yield of 4.39%.
InvestingPro Tips highlight that while Banner Corporation suffers from weak gross profit margins and is expected to see a drop in net income this year, analysts predict the company will remain profitable. This aligns with the company's performance over the last twelve months. For investors looking for more in-depth analysis, there are additional InvestingPro Tips available that could provide further guidance on Banner Corporation’s financial health and stock performance.
To access these tips and make more informed investment decisions, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With the next earnings date slated for July 17, 2024, and an InvestingPro fair value estimate of $43.07, investors have a benchmark against the analyst target of $52 to gauge potential investment opportunities.
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