Farmers National Banc stock target cut to $15 by Raymond James

Published 21/04/2025, 10:10
Farmers National Banc stock target cut to $15 by Raymond James

On Monday, Raymond (NSE:RYMD) James maintained its Outperform rating on Farmers National Banc (NASDAQ:FMNB), a regional bank with a market capitalization of $478 million, but reduced the price target from $17.00 to $15.00. The adjustment came after the company reported its first-quarter results, which showed solid performance with stronger revenues. The bank’s pre-tax, pre-provision income (PTPPI) exceeded expectations due to increased net interest income (NII) and fees. Additionally, the net interest margin (NIM) surpassed projections as funding costs decreased significantly. According to InvestingPro data, the bank currently trades at an attractive P/E ratio of 9.7x.

Despite the positive revenue and NIM trends, Farmers National Banc faces challenges in loan growth, and expenses are anticipated to rise due to acquisition-related impacts. Nevertheless, the recent restructuring of securities and further rate cuts are expected to contribute to the continued expansion of NIM. The bank maintains a strong dividend track record, having paid dividends for 32 consecutive years, with a current yield of 5.35%. Furthermore, the adjustment in accumulated other comprehensive income (AOCI) provided a boost to tangible common equity (TCE).InvestingPro analysis reveals several additional insights about Farmers National’s financial health and future prospects. Subscribers gain access to exclusive metrics, Fair Value calculations, and detailed financial analysis.

According to Raymond James, the bank’s conservative credit stance and the inflection in NIM and profitability present a favorable risk-reward dynamic. This outlook is supported by the bank’s shares trading at a price-to-earnings (P/E) discount compared to its peers. The analyst’s commentary highlighted the bank’s healthy credit trends and the potential for continued NIM expansion as key factors in maintaining the positive rating despite the lowered price target. InvestingPro analysis suggests the stock is currently undervalued based on its proprietary Fair Value calculations, with analysts projecting continued profitability for the year ahead.

In other recent news, Farmers National Banc Corp has announced a quarterly cash dividend of $0.17 per share. Shareholders who are on record as of March 14, 2025, will receive the dividend on March 31, 2025. This move aligns with the company’s ongoing practice of returning value to its shareholders. In addition to this, the company disclosed that Timothy F. Shaffer, currently serving as Senior Executive Vice President, Chief Banking Officer, and Chief Credit Officer, will retire on April 16, 2025. This retirement is part of the company’s strategic succession planning, and an executive search is underway to find a successor for the Chief Credit Officer role. Farmers National Banc Corp has not yet announced any potential candidates for the vacant positions following Shaffer’s departure. The company has also not provided further details on the direction it will take after this leadership change. These developments were reported in press releases filed with the Securities and Exchange Commission.

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.