DA Davidson reiterates buy rating on Enterprise Financial Services stock

DA Davidson maintained its buy rating and $65.00 price target on Enterprise Financial Services (NASDAQ:EFSC) in a research note released Tuesday. Currently trading at $51.96, the stock has strong analyst support, with consensus targets ranging from $64 to $66. According to InvestingPro data, four analysts have recently revised their earnings estimates upward for the upcoming period. The firm’s analysis follows a recent check-in with the bank regarding its pending branch acquisition and updates on loan growth, net interest margin, and credit quality.

The research firm believes investors may have been distracted from Enterprise Financial’s "strong organic momentum" by several factors, including the company’s asset sensitivity, its branch acquisition deal, and non-systemic credit issues. These distractions may have contributed to what DA Davidson views as an "attractive trading discount to peers." InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with revenue growing at 6.5% and a modest P/E ratio of 10.6x.

DA Davidson’s $65 price target represents 11.8 times the firm’s earnings per share estimate for 2026 and 1.4 times the projected tangible book value at the end of 2026. The firm’s analysis suggests confidence in Enterprise Financial’s long-term performance despite recent investor concerns.

Enterprise Financial Services operates as a financial holding company providing banking and wealth management services. The company has recently been pursuing growth through both organic channels and acquisitions, as evidenced by the pending branch acquisition discussed with analysts.

The bank’s management provided updates on loan growth and net interest margin during the meeting with DA Davidson, though specific figures from these discussions were not disclosed in the research note. Notably, InvestingPro data reveals the company has maintained dividend payments for 21 consecutive years, demonstrating consistent financial stability. Get access to the complete Enterprise Financial Services Pro Research Report, along with in-depth analysis of 1,400+ other US stocks, by subscribing to InvestingPro.

In other recent news, Enterprise Financial Services Corp reported impressive financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share of $1.31, exceeding the forecasted $1.18, and reported revenues of $168.35 million, which was higher than the anticipated $155.87 million. Enterprise Financial also announced the acquisition of 12 branches from First Interstate (NASDAQ:FIBK) Bank, a move expected to enhance its strategic position. Additionally, shareholders approved several key resolutions during the company’s annual meeting, including the election of board members and an amendment to increase shares available under the stock incentive plan.

The appointment of Deloitte & Touche LLP as the independent registered public accounting firm for 2025 was ratified. Analysts have noted the company’s robust performance, with firms like D.A. Davidson engaging in discussions about future capital strategies. The company’s recent branch acquisition is projected to contribute to earnings per share growth in 2026, with potential for further loan growth in late 2025 or early 2026.

Enterprise Financial’s focus on expanding its market presence and maintaining stable net interest margins has been highlighted by its executives. The company’s strategic initiatives and market expansion efforts have driven strong performance, particularly in its Western market, which saw significant commercial lending growth. Overall, Enterprise Financial Services Corp has demonstrated a strong start to 2025, setting a positive tone for its future endeavors.

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