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On Tuesday, DA Davidson maintained a Neutral rating on Flushing Financial Corp (NASDAQ:FFIC) with a steady price target of $13.00, which aligns with broader analyst targets ranging from $13.00 to $16.00. The firm’s analysis recognized the bank’s effective use of hedging strategies to manage the impact of rising interest rates. Despite this, the bank’s core liability-sensitive model is expected to experience a slower profitability recovery as the Federal Reserve reduces rates. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis.
The research firm adjusted its 2026 earnings estimate downward, citing weaker net interest margin (NIM) and fee income based on information from a recent presentation and discussions with investors and management. The commentary from DA Davidson highlighted that while Flushing Financial boasts strong credit quality and sufficient capital levels, these factors might contribute to a more favorable valuation compared to its current 0.6 times tangible book value (TBV). Notably, the bank maintains a significant 7.38% dividend yield and has sustained dividend payments for 30 consecutive years, as revealed by InvestingPro analysis, which offers 8 additional key insights about the company’s financial health and prospects.
Nevertheless, the anticipated lower profitability continues to weigh on the bank’s outlook, leaving limited potential for the stock to rise above the given price target. The firm’s stance remains neutral, indicating that they do not foresee significant movement in the stock’s price in the near term. This assessment followed a review of the bank’s financial strategies and performance, alongside investor and management perspectives, with the stock having declined 32% over the past six months.
In other recent news, Flushing Financial Corporation reported its first-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.23, compared to the forecast of $0.21. The company also reported revenue of $58.06 million, exceeding the projected $55.38 million. Despite these positive results, the company faced a non-cash goodwill impairment charge of $17.6 million, which affected overall profitability. Additionally, Raymond (NSE:RYMD) James adjusted its outlook on Flushing Financial by lowering the price target to $16.00 from $19.00, while maintaining an Outperform rating, reflecting an alignment with lower industry valuations.
DA Davidson maintained its Neutral rating on Flushing Financial, keeping a $13.00 price target, noting that pre-provision net revenue surpassed expectations due to improved net interest income and operational expenditures. The firm expressed concerns about the company’s potential for margin improvement without a steeper yield curve, despite the company’s strategic investments in SBA (LON:SBA) lending and branch expansions in Asian markets. Flushing Financial’s loan portfolio showed a loan-to-value ratio of 43% on a multi-family property loan, with active collaboration to resolve credit issues by mid-2025. The company projects stable asset levels for the rest of 2025, with expectations of net interest margin expansion through 2027.
Analysts noted that the stock is trading at 58% of tangible book value, suggesting a discounted valuation relative to the company’s net asset value. While Flushing Financial’s stock experienced a decline, the company’s strategic initiatives and continued expansion in Asian markets are aimed at long-term growth.
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