Bridgewater Bancshares price target raised to $19 at Piper Sandler

Published 26/06/2025, 13:56
Bridgewater Bancshares price target raised to $19 at Piper Sandler

Investing.com - Piper Sandler raised its price target on Bridgewater Bancshares Inc . (NASDAQ:BWB) stock to $19.00 from $18.00 on Thursday, while maintaining an Overweight rating on the shares. According to InvestingPro data, the stock currently trades at a P/E ratio of 14.2x and has a market capitalization of $437 million.

The investment firm cited expectations for improved profitability metrics and solid upside potential to estimates given the bank’s stronger organic balance sheet and net interest income growth prospects. Piper Sandler views Bridgewater as well-positioned to gain commercial market share and benefit from ongoing merger-related disruption in the Twin Cities metropolitan area.

Bridgewater Bancshares stock has outperformed the broader banking sector, rising 19.5% year-to-date compared to the NASDAQ Bank Index’s 3.3% decline. InvestingPro data shows even stronger performance, with a 44.4% return over the past year and the stock trading near its 52-week high. The research firm expects credit quality to remain strong and tangible book value growth to continue outpacing peers. Get access to 6 more exclusive InvestingPro Tips and comprehensive analysis with a subscription.

With three analysts recently revising earnings upward for the upcoming period, as noted by InvestingPro, Piper Sandler adjusted its 2025 and 2026 operating earnings per share estimates to $1.42 and $1.65, respectively, from previous estimates of $1.45 and $1.70, reflecting revised net interest margin assumptions. The company’s next earnings report is scheduled for July 24, 2025.

The new $19 price target represents an 11.5x multiple on the firm’s 2026 earnings estimate, a premium to peers trading at approximately 9.0x, with the analysts noting Bridgewater’s "M&A optionality given its building excess capital outlook and scarcity value in the Twin Cities MSA."

In other recent news, Bridgewater Bancshares has reported its first-quarter 2025 financial results, surpassing analyst expectations. The company achieved an earnings per share of $0.32, exceeding the projected $0.29, and reported revenues of $32.29 million, above the anticipated $30.32 million. Despite these strong financial results, the company’s stock saw a slight decline in after-hours trading. The firm’s net interest margin expanded by 19 basis points to 2.51%, driven by lower deposit pricing and higher loan yields. Bridgewater Bancshares continues to focus on affordable housing and loan growth, which contributed to a 23% year-over-year increase in total revenue. Analysts from firms like D.A. Davidson and Piper Sandler noted the company’s strong performance and ongoing market opportunities, particularly in the Twin Cities. Additionally, the company has been actively managing its asset quality, with no net charge-offs reported during the quarter. The firm’s strategic initiatives include enhancing its digital banking services and expanding its affordable housing vertical.

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