DA Davidson cuts HBT Financial stock target to $23, keeps neutral rating

Tuesday, DA Davidson analysts adjusted their outlook on HBT Financial (NASDAQ:HBT) shares, lowering the price target to $23 from $24, while maintaining a Neutral rating on the stock. Trading at $22.69, InvestingPro analysis suggests the stock is fairly valued. The analysts noted improvements in the bank’s core net interest margin (NIM), which was found to be more favorable than initially anticipated. Despite the positive aspects of the bank’s performance, growth expectations for HBT Financial have been tempered.

According to the DA Davidson analysts, HBT Financial has demonstrated effective control over credit quality and associated costs. The bank’s strategic approach is expected to remain agile, with a focus on potential buybacks and mergers and acquisitions as opportunities arise. With a solid dividend yield of 3.76% and three consecutive years of dividend growth, the bank has maintained strong shareholder returns. The analysts believe that this strategy will allow HBT Financial to continue generating profitability that surpasses that of its peers.

The commentary from DA Davidson highlighted the bank’s solid financial management and the expectation of sustained above-average profitability. InvestingPro data supports this view, with the bank achieving a "GOOD" overall Financial Health score and maintaining strong profitability metrics. The decision to lower the price target reflects a recalibration in growth expectations, even as the bank’s core financial metrics appear strong.

The maintained Neutral rating indicates that while the analysts see positive aspects in HBT Financial’s operations, they also recognize factors that warrant a cautious outlook. The revised price target of $23 represents the analysts’ current valuation of the stock based on their assessment of the company’s financial health and market position. For deeper insights into HBT Financial’s valuation metrics and additional ProTips, explore InvestingPro, which offers comprehensive financial analysis and exclusive investment insights.

The analysis by DA Davidson provides investors with an updated perspective on HBT Financial’s stock, factoring in recent developments in the company’s performance and strategy. With a close eye on credit quality and profitability, HBT Financial is positioned to adapt to market opportunities while maintaining a stable financial footing.

In other recent news, HBT Financial reported operating earnings of $0.62 per share, surpassing analyst estimates by $0.04. This achievement was driven by improvements in Pre-Provision Net Revenue and a better-than-expected provision. The company experienced an 11% increase in loan growth and a 4% rise in deposit growth, contributing to a stronger financial performance. HBT Financial’s net interest margin also exceeded expectations due to strategic changes and reduced funding costs. Analysts at Keefe, Bruyette & Woods responded by raising the price target for HBT Financial shares to $28, maintaining an Outperform rating. The revised earnings per share estimates for 2025 and 2026 have been increased by 3% and 5%, respectively, reflecting a positive outlook. These developments indicate a favorable trajectory for HBT Financial’s financial health in the near future.

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