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Investing.com - Keefe, Bruyette & Woods raised its price target on Home Bancshares (NYSE:HOMB) to $32.00 from $30.00 on Monday, while maintaining a Market Perform rating on the stock.
The firm cited Home Bancshares’ strong fundamentals in its decision, noting the company reported earnings that beat expectations due to improved revenue growth, stable net interest margin, and higher fees. The company has maintained consistent performance, with six analysts recently revising their earnings estimates upward according to InvestingPro data.
KBW highlighted that Home Bancshares maintained stable credit metrics and repurchased 1 million shares as expected during the quarter.
The research firm pointed to Home Bancshares’ "best in class" profitability metrics, including a 2.09% return on assets and 2.7% pre-provision net revenue return on assets.
KBW suggested a potential merger or acquisition transaction could serve as a near-term catalyst for the stock, which currently trades at 12.7 times 2026 estimated earnings and 2.12 times tangible book value per share.
In other recent news, Home Bancshares has seen its stock price target raised by Citi from $28 to $30. This adjustment comes on the heels of the company’s second-quarter results, which highlighted solid loan growth and better-than-expected pre-provision net revenue, largely driven by strong fee income. Citi maintained a Neutral rating on the stock while noting Home Bancshares’ strong core profitability metrics and ample capital base as significant resources for future operations. The firm attributed the revised price target to lower cost of equity assumptions and a modestly improved earnings per share outlook. Despite some delays in credit clean-up, Citi observed progress and anticipated further recoveries in upcoming quarters. These developments could support the company’s allowance for credit losses build without increasing loan loss provision expenses. Overall, these recent updates reflect a cautiously optimistic view from Citi regarding Home Bancshares’ financial performance and future potential.
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