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Investing.com - Piper Sandler has raised its price target on HBT Financial (NASDAQ:HBT) to $29.00 from $26.00 while maintaining a Neutral rating on the stock. The bank stock, currently trading near its 52-week high with a market capitalization of $838 million, has shown strong momentum with a 22% year-to-date return according to InvestingPro data.
The research firm cited HBT’s solid second-quarter performance and long-term outlook in its decision. Despite lower-than-anticipated loans and deposits, Piper Sandler noted that HBT delivered another solid quarter with pre-provision net revenue essentially in-line excluding recoveries. InvestingPro analysis shows the company maintains a "GREAT" financial health score, with particularly strong profitability metrics.
HBT Financial demonstrated profitability metrics of 1.57% return on assets and 16.0% return on tangible common equity in the second quarter, which Piper Sandler described as "well-above peers." The firm views HBT as an attractive defensive and long-term holding due to its superior profitability outlook, building excess capital, and conservative credit profile. The company also offers a 3.19% dividend yield and has raised its dividend for three consecutive years, according to InvestingPro data.
Piper Sandler raised its 2025 operating earnings per share estimate to $2.45, an increase of $0.05, largely reflecting second-quarter upside. The firm trimmed its 2026 estimate to $2.45, a decrease of $0.05, due to a lower loan growth starting point following the second quarter.
The new $29 price target represents a 12.0x multiple on Piper Sandler’s 2026 earnings estimate, which the firm notes is consistent with a premium to peers who trade at approximately 10.0x.
In other recent news, HBT Financial reported second-quarter earnings that surpassed analyst expectations, posting adjusted earnings per share of $0.63, higher than the anticipated $0.60. However, revenue was slightly below forecasts, coming in at $58.8 million compared to the consensus estimate of $59.33 million, although it still marked a 3.9% increase from the previous year. The company’s net interest margin improved, rising to 4.19% on a tax-equivalent basis, which reflects a positive trend in profitability. Keefe, Bruyette & Woods (KBW) raised its price target for HBT Financial from $28 to $30, maintaining an Outperform rating, citing better-than-expected operating earnings. Meanwhile, DA Davidson also increased its price target from $23 to $27, while keeping a Neutral rating, highlighting the company’s improved profitability and stable credit profile. Both firms noted the positive impact of higher net interest income on HBT Financial’s earnings. These developments indicate a period of strong financial performance and positive analyst sentiment for HBT Financial.
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