HBT Financial stock price target raised to $27 from $23 at DA Davidson

Published 21/07/2025, 20:30
HBT Financial stock price target raised to $27 from $23 at DA Davidson

Investing.com - DA Davidson raised its price target on HBT Financial (NASDAQ:HBT) to $27.00 from $23.00 on Monday, while maintaining a Neutral rating on the stock. The new target comes as HBT trades near its 52-week high of $26.71, with a current market capitalization of $830.5 million. InvestingPro analysis suggests the stock is slightly overvalued at current levels.

The firm lifted its forward earnings per share projections with a higher net interest income forecast, despite reduced loan growth expectations. DA Davidson noted that HBT Financial’s improving profitability while managing a clean credit profile is commendable. The bank currently trades at a P/E ratio of 11.01x and offers a dividend yield of 3.32%, with InvestingPro data showing a "GOOD" overall financial health score.

The research firm raised its 2025 EPS estimate from $2.45 to $2.50 and its 2026 EPS estimate from $2.30 to $2.50. These adjustments include an improved net interest income outlook despite lower projected loan totals, along with reduced expense assumptions.

DA Davidson’s new $27 price target equates to 10.8 times its 2026 EPS estimate and 1.7 times current tangible book value. The firm observed that HBT Financial’s current and projected profitability metrics exceed peers, deserving of a premium valuation.

The bank holding company maintains its Neutral rating from DA Davidson, which expressed confidence that balance sheet growth will come in time.

In other recent news, HBT Financial reported second-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings per share of $0.63, surpassing the consensus estimate of $0.60. Revenue for the quarter was $58.8 million, slightly below the expected $59.33 million but up 3.9% from the same period last year. The net interest margin improved to 4.19%, reflecting a year-over-year increase. Despite a decrease in total loans to $3.35 billion due to seasonal factors, management anticipates loan growth in the third quarter of 2025. Asset quality remained stable, with nonperforming assets at 0.13% of total assets. The company’s capital position also strengthened, with an increase in the tangible common equity ratio. Additionally, HBT Financial repurchased 135,997 shares of its common stock, leaving $12.1 million available under its repurchase program. These developments highlight the company’s strong financial performance and strategic initiatives.

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