DA Davidson reiterates buy rating on Glacier Bancorp stock

Investing.com - DA Davidson reiterated its Buy rating and $50.00 price target on Glacier Bancorp (NYSE:GBCI) Wednesday following the bank’s announced acquisition of Guaranty (NYSE:GNTY). The target represents a potential 17% upside from the current price of $42.63, with InvestingPro data showing the stock trading near its 52-week low of $35.26.

The transaction marks Glacier Bancorp’s entrance into the Texas market, a move that aligns with the company’s previously communicated expansion strategy. The deal is expected to be solidly accretive to earnings per share while causing minimal tangible book value dilution. With a market capitalization of $4.84 billion and a track record of maintaining dividend payments for 41 consecutive years, Glacier Bancorp demonstrates strong financial stability. For deeper insights into GBCI’s financials and growth potential, check out the comprehensive analysis available on InvestingPro.

DA Davidson noted several positive aspects of the acquisition, including an anticipated quick closing timeline and a target that fits well with Glacier’s preferred asset size. The firm also highlighted the cultural compatibility between the two banking organizations.

The research firm indicated that the transaction should not surprise investors, as Glacier Bancorp has consistently communicated its appetite for expanding its geographic footprint through mergers and acquisitions.

DA Davidson emphasized that the deal demonstrates Glacier Bancorp’s potential for continued growth both organically and through future acquisitions. The firm plans to update its financial model following Glacier’s conference call discussing the transaction.

In other recent news, Glacier Bancorp Inc. reported its first-quarter 2025 earnings, revealing a diluted earnings per share (EPS) of $0.48, which slightly exceeded analysts’ expectations of $0.47. However, the company’s revenue fell short of projections, coming in at $222.6 million compared to the forecasted $227.2 million. In a significant development, Glacier Bancorp announced plans to acquire Guaranty Bancshares, Inc. in an all-stock transaction valued at approximately $476.2 million. This acquisition, marking Glacier’s 27th bank acquisition since 2000, is set to expand its presence in the Southwest by entering the Texas market. The deal is expected to close in the fourth quarter of 2025, pending regulatory and shareholder approvals. Additionally, Glacier Bancorp declared a quarterly dividend of $0.33 per share, maintaining its long-standing dividend payment history. Analyst feedback from firms such as Stephens Inc. and Keefe Bruyette & Woods highlighted the strategic fit of the acquisition, while also noting the company’s continued stable dividend payouts. These developments are set against the backdrop of Glacier’s robust net interest margin, which exceeded 3% for the first time in two years.

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