Hanmi Financial stock price target raised to $30.50 from $29.00 at KBW

Investing.com - Keefe, Bruyette & Woods (KBW) raised its price target on Hanmi Financial (NASDAQ:HAFC) to $30.50 from $29.00 on Wednesday, while maintaining a Market Perform rating on the stock.

The price target increase follows what KBW described as a "great quarter" for Hanmi Financial, which "easily beat expectations" due to better-than-expected margin improvement and continued momentum in loan growth. InvestingPro analysis shows the company remains profitable with a P/E ratio of 11.3x, and analysts predict continued profitability this year. Get access to 12+ additional InvestingPro Tips and comprehensive financial analysis with an InvestingPro subscription.

KBW noted that Hanmi Financial showed margin improvement of 12 basis points quarter-over-quarter, excluding a 3 basis point interest recovery, along with loan growth at a 14% annualized rate, reflecting the company’s efforts in building out commercial lending, including USKC, and residential lending.

The research firm highlighted that asset quality showed improvement, including modest net recoveries, following what it called a "Q2 idiosyncratic charge-off."

KBW expects Hanmi Financial shares to "react very favorably" given that its estimates are "materially higher" with 5-7% upward revisions, while the stock is still trading below tangible book value at 0.95x.

In other recent news, Hanmi Financial Corporation reported third-quarter earnings that exceeded Wall Street expectations. The company announced earnings per share of $0.73, which was higher than the projected $0.65, marking a 12.3% surprise. Additionally, Hanmi Financial’s revenue reached $70.96 million, surpassing the anticipated $67.8 million. These results highlight the company’s strong financial performance for the quarter. The positive earnings and revenue figures are significant developments for investors. The company’s performance has garnered attention from analysts and investors alike. These recent developments provide crucial insights into Hanmi Financial’s financial health and market position.

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