Banner stock price target raised to $72 from $67 at DA Davidson

Investing.com - DA Davidson has raised its price target on Banner Corporation (NASDAQ:BANR) to $72.00 from $67.00 while maintaining a Neutral rating on the stock. The $2.33 billion market cap bank currently trades at a P/E ratio of 13.2x and has maintained dividend payments for 31 consecutive years. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.

The firm cited strong loan growth, net interest margin stability, good core expense control, and steady credit as major themes in Banner’s second quarter 2025 performance.

DA Davidson noted that these factors translate to greater net interest income momentum in their model, driving an increase to their earnings per share estimates while maintaining their Neutral rating.

The firm raised its 2025 and 2026 EPS estimates from $5.45 and $5.42 to $5.50 and $5.80, respectively, with adjustments including an improved net interest income outlook and reduced expense expectations.

The new $72 price target equates to 12.4 times DA Davidson’s 2026 EPS estimate and 1.7 times current tangible book value, reflecting both updated EPS outlook and improved peer trading multiples.

In other recent news, Banner Corporation reported its second-quarter earnings for 2025, exceeding earnings per share (EPS) expectations but falling short on revenue. The company’s EPS was $1.35, surpassing the anticipated $1.30, while revenue was $162.2 million, below the forecasted $167.04 million. Despite the revenue shortfall, Banner Corporation demonstrated strong growth in loan originations and core operations revenue. The firm reported net profits available to common shareholders of $45.5 million, or $1.31 per diluted share, an improvement from the previous year. Analysts noted the company’s anticipated stable margins with expected mid-single-digit loan growth for 2025. Banner Corporation’s core operations revenue increased to $163 million from $150 million in the previous year, reflecting solid performance. The company continues to focus on organic growth, with no immediate plans for mergers and acquisitions. Additionally, Banner Corporation’s Chief Financial Officer highlighted a stable competitive environment, with no significant challenges expected in deposit competition.

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