U.S. stocks rise on Fed cut bets; earnings continue to flow
Investing.com - DA Davidson raised its price target on Equity Bancshares (NYSE:EQBK) to $45.00 from $44.00 while maintaining a Neutral rating. According to InvestingPro data, the stock currently trades at a P/E ratio of 10.5x with a market capitalization of $817 million.
The research firm cited the expected successful close of the Frontier acquisition in mid-fourth quarter 2025 as a key factor in its decision to increase the price target.
DA Davidson also noted that a recently announced loss trade transaction contributed to the revised outlook, with both developments positively impacting earnings per share (EPS) and return on tangible common equity (ROTCE) projections.
The firm increased its core EPS estimates for Equity Bancshares from $3.90 to $4.00 for 2025 and from $4.50 to $5.00 for 2026, despite an approximately 4% reduction to its 2025 year-end tangible book value (TBV) projection. For deeper insights into Equity Bancshares’ valuation and financial metrics, access the comprehensive Pro Research Report available on InvestingPro.
The new $45 price target equals 9.0 times DA Davidson’s revised 2026 EPS estimate and 1.4 times the projected 2025 year-end TBV. The stock currently trades at 1.28 times book value, with analysts’ targets ranging from $45 to $51.
In other recent news, Equity Bancshares reported its second-quarter 2025 earnings, which did not meet analysts’ expectations. The company posted earnings per share of $0.86, below the forecasted $0.888, and revenue of $58.39 million, missing the anticipated $60.46 million. Despite the earnings miss, Equity Bancshares completed a $75 million subordinated notes offering, set to mature in 2035, with interest rates transitioning from a fixed to a floating rate over time. In response to the earnings report, Keefe, Bruyette & Woods raised their price target for Equity Bancshares to $45, citing an outlook that remains stable with a Market Perform rating. Similarly, DA Davidson increased their price target to $44, maintaining a Neutral rating, while acknowledging the impact of lower credit and tax costs on earnings per share. These developments highlight the mixed financial performance and strategic financial activities of Equity Bancshares.
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