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Investing.com - Piper Sandler downgraded BankUnited (NYSE:BKU) from Overweight to Neutral on Thursday, while raising its price target to $43.00 from $41.00. According to InvestingPro data, BKU currently trades at $39.55, with an overall financial health score rated as "GOOD."
The downgrade follows BankUnited’s approximately 12% outperformance since the early March pullback in bank stocks. The bank’s shares are now up about 4% year-to-date, just 1% below the performance of the KRE regional banking index. InvestingPro data shows the stock has delivered a 10.2% return over the past year, while maintaining dividend payments for 15 consecutive years.
Piper Sandler noted that with BKU shares now trading above tangible book value per share (TBVPS), the firm no longer views the stock as an outsized recovery opportunity. The research firm indicated that additional upside would require meaningful improvement in profitability trends. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Subscribers can access 8 additional ProTips and comprehensive valuation metrics in the Pro Research Report.
While BankUnited’s return on assets (ROA) climbed to 77 basis points in the recent quarter, Piper Sandler continues to model 2026 ROA in the 70 basis points range. The firm believes the shares should continue to trade based on a TBVPS multiple until profitability reaches peer median levels.
The new $43 price target assumes BankUnited shares will move to approximately 1.05 times TBVPS one year from now, which equates to just over 12 times Piper Sandler’s 2026 earnings estimate.
In other recent news, BankUnited reported its second-quarter 2025 financial results, significantly surpassing earnings expectations. The company announced an earnings per share (EPS) of $0.91, which exceeded the forecasted $0.79. Revenue also outperformed expectations, reaching $273.93 million compared to the anticipated $267.05 million. These results indicate a positive performance for the quarter, reflecting the company’s strong financial position. Analysts and investors closely monitor such earnings reports as they provide insights into a company’s operational health and future prospects. While the stock price movement was noted following the announcement, the focus remains on the financial achievements. As investors digest these figures, the market’s response will continue to unfold in the coming days.
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