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Investing.com - Cantor Fitzgerald has reiterated its Overweight rating on BankUnited (NYSE:BKU) while maintaining its $44.00 price target, representing a potential total return of approximately 21% including dividends. The stock currently trades at $36.98, with a P/E ratio of 10.3x, suggesting an attractive valuation according to InvestingPro metrics.
The firm adjusted its core EPS estimates for fiscal years 2025, 2026, and 2027 to $3.41, $3.72, and $4.20, respectively, reflecting expectations for lower net interest income, partially offset by stronger fee income, a lower provision, and reduced expenses. This outlook aligns with the company’s strong revenue growth of 13.4% over the last twelve months.
Cantor Fitzgerald identified a potential strategic shift at BankUnited, noting management indicated the no-growth balance sheet remix approach that dominated the bank’s strategy for years could be ending, with fiscal year 2026 potentially serving as an inflection point for a return to loan growth.
The firm expects this strategic pivot to drive net interest income and EPS growth while enhancing profitability at the bank, with EPS growth acceleration anticipated into fiscal year 2027 as fee-based businesses continue to develop.
Cantor Fitzgerald also highlighted that BankUnited shares currently trade at a 4.6% discount to tangible book value per share, suggesting management could pursue share buybacks, which would provide additional support for the stock. The bank has maintained dividend payments for 15 consecutive years, with a current yield of 3.4% and a 6.9% dividend growth rate in the last year. For deeper insights into BKU’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports.
In other recent news, BankUnited Inc. reported its financial results for the third quarter of 2025, showcasing a notable performance in earnings per share (EPS). The company posted an EPS of $0.95, exceeding the forecasted $0.88. However, BankUnited’s revenue came in slightly below expectations, recording $275.68 million compared to the anticipated $280.21 million. Despite the revenue miss, the company managed to surpass EPS expectations. These recent developments highlight BankUnited’s ability to achieve higher profitability even when revenue projections are not fully met. The financial results provide investors with crucial insights into the company’s performance. This information is essential for stakeholders evaluating BankUnited’s recent financial activities.
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