Intel stock extends gains after report of possible U.S. government stake
On Monday, DA Davidson adjusted its outlook on S&T Bancorp Inc. (NASDAQ:STBA) by reducing the price target to $42.00 from the previous $43.00, while continuing to hold a Neutral stance on the stock. The firm’s analyst, Manuel Navas, cited a combination of factors influencing the decision, including S&T Bancorp’s quarterly performance that showcased a smaller-than-anticipated net interest margin (NIM) contraction, solid loan growth, and a loan loss provision (LLP) release that contributed to an earnings per share (EPS) that surpassed expectations.
Despite the positive aspects such as the EPS beat, the company’s pre-provision net revenue (PPNR) did not meet the mark due to lower fee income and higher operating expenses. This resulted in the stock’s performance aligning with the KRX index on the day of the earnings report, following a period where the stock had been trailing the index by 5%. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics.
Looking ahead, DA Davidson raised its EPS estimates based on expectations of improving loan growth, a stable NIM, and controlled expenses. The analyst also noted that S&T Bancorp’s growth in 2025 is likely to benefit from recent hiring and deposit gathering initiatives. However, the firm forecasts returns in line with peers, projecting a 1.75% PPNR return on assets (ROA) for 2026, which is considered already fairly valued when compared to the 11.3 times 2026 earnings estimate versus the 11.0 times average of KRX peers.
The maintained Neutral rating and the revised price target reflect DA Davidson’s view that there is limited upside potential for S&T Bancorp’s stock price, based on the current projections and market valuations.
In other recent news, S&T Bancorp Inc. reported stronger-than-expected earnings for the fourth quarter of 2024, surpassing
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