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On Thursday, DA Davidson maintained a Neutral rating on Simmons First National (NASDAQ:SFNC) shares with a steady price target of $23.00, representing potential upside from the current price of $17.43. According to InvestingPro analysis, the stock appears slightly undervalued based on its Fair Value metrics. The firm acknowledged the company’s generally positive performance during the quarter, despite an earnings per share (EPS) miss attributed to a higher provision for credit losses related to two commercial credits. The provision was noted as an exception in an otherwise strong quarter.
The report highlighted that Simmons First National’s pre-provision net revenue (PPNR) per share exceeded expectations. This favorable outcome was set against the backdrop of a slight sequential growth in loans for the quarter. The company’s loan pipeline was described as robust, which supports the unchanged full-year loan growth forecast in the low single-digit percentage range. Notably, InvestingPro data shows the company has maintained dividend payments for 52 consecutive years and currently offers a 4.69% dividend yield, demonstrating strong shareholder returns despite recent market challenges.
In addition to loan growth, Simmons First National’s net interest income (NII) projections remain steady. DA Davidson’s analysis indicates that the bank’s NII is expected to increase by 5% to 7% over the year. This projection aligns with the bank’s performance and market position, as outlined in the report.
The reiteration of the Neutral rating and the $23.00 price target reflects DA Davidson’s view of the bank’s current valuation and future prospects. The target is based on the analysis of the bank’s quarterly performance, loan growth, and NII expectations.
The financial sector and Simmons First National investors will continue to monitor the company’s performance in relation to the projections and expectations set by market analysts such as those at DA Davidson. The company’s ability to manage its commercial credit provisions and maintain loan growth will be key factors in achieving the anticipated NII increase. For deeper insights into SFNC’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which provide expert analysis on over 1,400 US stocks.
In other recent news, Simmons First National Corporation reported its first-quarter 2025 earnings, revealing a mixed performance. The company reported earnings per share (EPS) of $0.26, which fell short of the forecasted $0.358, indicating challenges in managing costs and profitability. However, the company slightly exceeded revenue expectations, reporting $209.58 million against the forecasted $209.14 million. Non-interest income also saw a 6% increase quarter-over-quarter, demonstrating some positive momentum in sales efforts. The commercial loan pipeline reached its highest level since Q2 2022, suggesting potential growth opportunities. Additionally, Simmons First National faced a customer deposit fraud event, which increased adjusted non-interest expenses by $4.3 million. The company is focusing on deposit optimization and reducing brokered funding, with a continued increase in consumer checking accounts by 1.5% year-over-year. Analysts from Raymond (NSE:RYMD) James and KBW have shown interest in the company’s credit management strategies, particularly concerning two specific credit relationships that have been moved to non-accrual status.
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