Independent Bank Corp stock price target raised by Raymond James to $84

Investing.com - Raymond (NSE:RYMD) James raised its price target on Independent Bank Corp (NASDAQ:INDB), a $3.48 billion regional bank, to $84.00 from $78.00 while maintaining a "Strong Buy" rating following the company’s second-quarter 2025 results. According to InvestingPro data, the stock has shown strong momentum with a 10.28% gain year-to-date.

The investment firm cited continued net interest margin expansion and share repurchases as factors that should support steady improvement in profitability for the New England-based financial institution, which currently offers a 3.4% dividend yield and has raised its dividend for 14 consecutive years.

Raymond James noted that Independent Bank’s credit profile improved in the second quarter with the resolution of two office credits, adding that the bank indicated other potential problem office credits have cooperative sponsors, suggesting credit trends should improve.

The firm expressed optimism about Independent Bank’s risk-reward profile, highlighting that the stock trades at 9.4 times their 2026 earnings estimate and 10.0 times their cash earnings per share estimate.

Raymond James projects that Independent Bank’s profitability will likely improve to a mid-teens return on tangible common equity in 2026.

In other recent news, Independent Bank reported strong financial results for the second quarter of 2025, with earnings per share (EPS) of $1.25, surpassing the forecasted $1.21. Revenue also exceeded expectations, reaching $181.8 million compared to the anticipated $179.47 million. The bank’s acquisition of Enterprise Bank was completed, which is expected to enhance its asset base and competitive position. Additionally, Independent Bank achieved a 35% reduction in non-performing assets from the previous quarter. Analysts have noted that the bank’s strategic focus on community banking and investment commercial real estate portfolios contributed to its robust performance. CFO Mark Bregiro highlighted the bank’s strong positioning and the anticipated realization of full cost synergies from the Enterprise acquisition by the first quarter of 2026. The bank has also announced a $150 million stock buyback, indicating a strong capital position. Looking ahead, Independent Bank projects a net interest margin in the mid-3.60% range for the third quarter.

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