DA Davidson maintains Meridian Bank buy rating, $19 target

Published 28/01/2025, 16:36
DA Davidson maintains Meridian Bank buy rating, $19 target

Gunther modified the EPS forecast, citing a less favorable mortgage banking outlook. However, this was partly mitigated by a more robust NIM trajectory. His assessment underscores the bank’s potential for above-peer growth, considering it is currently trading at a low 1.1 times price to tangible book value (P/TBV), which Gunther believes does not reflect its true value. Trading at $16.50, near its 52-week high of $17.33, the stock appears fairly valued according to InvestingPro Fair Value metrics, with a moderate dividend yield of 3%. Trading at $16.50, near its 52-week high of $17.33, the stock appears fairly valued according to InvestingPro Fair Value metrics, with a moderate dividend yield of 3%.

Gunther modified the EPS forecast, citing a less favorable mortgage banking outlook. However, this was partly mitigated by a more robust NIM trajectory. His assessment underscores the bank’s potential for above-peer growth, considering it is currently trading at a low 1.1 times price to tangible book value (P/TBV), which Gunther believes does not reflect its true value. Trading at $16.50, near its 52-week high of $17.33, the stock appears fairly valued according to InvestingPro Fair Value metrics, with a moderate dividend yield of 3%.

Gunther modified the EPS forecast, citing a less favorable mortgage banking outlook. However, this was partly mitigated by a more robust NIM trajectory. His assessment underscores the bank’s potential for above-peer growth, considering it is currently trading at a low 1.1 times price to tangible book value (P/TBV), which Gunther believes does not reflect its true value.

In other recent news, Meridian Corporation disclosed its financial results, showcasing an increase in net income for the fourth quarter and the full year of 2024. The net income for the quarter was $5.6 million, or $0.49 per diluted share, and for the year, it reached $16.3 million, or $1.45 per diluted share. This signifies an 18.1% growth from the previous quarter and a 23.4% increase year over year.

In addition, the company’s Board of Directors declared a quarterly cash dividend of $0.125 per common share. Meridian Corporation also disclosed its third quarter financial performance, revealing an earnings per share (EPS) of $0.42, surpassing both Piper Sandler’s estimate of $0.34 and the consensus estimate of $0.35. This led Piper Sandler to raise its price target for Meridian Bank (NASDAQ:MRBK) from $14.00 to $15.00, while maintaining a neutral rating.

In other developments, Meridian Bank’s second quarter earnings report showed an EPS of $0.30, slightly missing the consensus estimate of $0.31. Despite this, Piper Sandler maintained a neutral rating on the company’s stock, raising the price target from $11.00 to $13.00. These recent developments reflect Meridian Bank’s financial health and performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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