Oil prices hold sharp losses with focus on secondary India tariffs
Investing.com - Piper Sandler lowered its price target on Isabella Bank Corp (NASDAQ:ISBA) to $34.00 from $37.50 on Tuesday, while maintaining a Neutral rating on the stock. The $223 million market cap bank has shown impressive momentum, delivering a 60% return over the past year.
The price target reduction reflects lower peer multiples, with Piper Sandler applying a 10.5x multiple to its 2026 earnings per share estimate, down from its previous 12.0x multiple. Despite the lower target, the firm noted this still represents a premium to peers trading at 8.9x earnings. According to InvestingPro analysis, the stock currently trades at 14.7x earnings and appears undervalued based on its Fair Value model.
Piper Sandler maintained its 2025 operating EPS estimate at $2.40 and raised its 2026 estimate to $2.60 from $2.55, citing reduced loan loss provision and tax rate assumptions.
The research firm highlighted Isabella Bank’s strong second-quarter results, with pre-provision net revenue exceeding Piper Sandler’s estimate by 10%, driven by stronger net interest income and core fee income.
Piper Sandler also pointed to several positive factors for the bank, including improving profitability outlook through net interest margin expansion, low-to-mid-single-digit growth expectations in loans and deposits, core fee income growth initiatives, tight cost controls, and proactive excess capital management. The bank’s revenue grew by 10.3% over the last twelve months, supporting its positive momentum.
In other recent news, Isabella Bank Corporation has announced a cash dividend of $0.28 per common share for the second quarter of 2025, payable on June 30 to shareholders of record as of June 26. This dividend reflects the company’s ongoing commitment to returning value to its shareholders. Additionally, Isabella Bank Corporation has expanded its share repurchase program, increasing the capacity by 500,000 shares, allowing for a total of 538,448 shares to be repurchased. This move continues the repurchase initiative that began in 2007, with over 2.5 million shares already bought back. The company has stated that the enhanced program does not have a set expiration date and will be influenced by various market factors. In corporate governance news, Chad R. Payton has resigned from the board of directors of Isabella Bank Corp and its subsidiary, Isabella Bank. His resignation was effective as of June 25 and was not due to any disagreements with the company or its board. These developments highlight Isabella Bank’s strategic financial maneuvers and changes in its board composition.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.