DA Davidson raises Equity Bancshares stock price target to $44 from $39

Published 15/07/2025, 18:58
DA Davidson raises Equity Bancshares stock price target to $44 from $39

Investing.com - DA Davidson has raised the price target on Equity Bancshares (NYSE:EQBK) to $44.00 from $39.00 while maintaining a Neutral rating on the stock. According to InvestingPro analysis, the $799 million market cap bank appears undervalued, with the stock showing strong returns over both three months and five years.

The research firm noted that while revenue came in below forecast, lower credit and tax costs helped lift earnings per share for the banking company. The bank maintains healthy profitability with a P/E ratio of 10.4 and impressive revenue growth of 56% in the last twelve months.

DA Davidson highlighted surprising strength in net interest margin (NIM) and building loan activity as positive factors in its assessment of Equity Bancshares.

The firm also pointed to the recently closed NBC Oklahoma deal, which it expects will improve efficiency for the bank, along with the likelihood of more mergers and acquisitions activity in the future.

DA Davidson cautioned that credit quality bears watching due to softening in the restaurant arena, though it acknowledged that losses remain modest for Equity Bancshares.

In other recent news, Equity Bancshares Inc . reported its second-quarter 2025 earnings, which fell short of market expectations. The company announced an earnings per share (EPS) of $0.86, missing the forecasted $0.888, while revenue reached $58.39 million, below the anticipated $60.46 million. Despite these results, the company completed a merger with NBC Bank, which has contributed to loan production growth and an increase in net interest income. The merger is expected to enhance the company’s performance by expanding its footprint into the Oklahoma City market. Analysts from Stephens and D.A. Davidson have been actively engaging with the company, discussing various aspects of its financial health and strategic direction. Equity Bancshares maintains a positive outlook for credit conditions in 2025 and anticipates continued strong performance in its existing markets. The company also forecasts future earnings per share of $1.0 for Q3 2025 and $1.05 for Q4 2025. Despite the earnings miss, the company remains optimistic about its strategic direction, with ongoing merger and acquisition discussions.

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