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On Monday, Keefe, Bruyette & Woods adjusted their price target on Great Southern Bancorp (NASDAQ:GSBC) shares, bringing it down to $61.00 from the previous $63.00, while retaining a Market Perform rating. The adjustment follows Great Southern Bancorp’s recent earnings report, which revealed earnings per share (EPS) of $1.47, surpassing expectations due to stronger pre-provision net revenue (PPNR) and a lower provision for credit losses.
The company’s earnings beat was attributed to effective expense control, which contributed to the robust PPNR. Net interest income (NII) showed a slight improvement but this was counterbalanced by a decrease in fee income. Credit trends for Great Southern Bancorp remained positive with minimal net charge-offs (NCOs) and low nonperforming assets (NPAs). Despite flat loan growth, these strong credit trends led to a slight provision reversal. The company maintains a strong financial position with an 11% return on equity and has consistently paid dividends for 36 consecutive years, currently yielding 2.97%.
Looking forward, growth is expected to be muted. The company plans to continue its focus on managing expenses, maintaining margins, and using excess capital to buy back shares. Keefe, Bruyette & Woods have modestly adjusted their forward estimates for Great Southern Bancorp, citing a more conservative valuation in light of current market sentiment, which has influenced the decision to lower the price target.
The firm’s report emphasized Great Southern Bancorp’s strategy of concentrating on controllable factors in an environment where growth is anticipated to remain sluggish. With a conservative beta of 0.52, the stock has shown lower volatility compared to the broader market. The reiteration of the Market Perform rating suggests that the analysts see the stock as fairly valued given the recent developments and market conditions.
In other recent news, Great Southern Bancorp reported a strong performance for the first quarter of 2025, with earnings per share (EPS) of $1.47, surpassing the forecasted $1.29. The company’s net income rose to $17.2 million, an increase from $13.4 million in the same quarter last year. Revenue also exceeded expectations, reaching $55.92 million against the projected $55.53 million. Net interest income increased by 10% year-over-year, totaling $49.3 million. Total (EPA:TTEF) assets grew to $5.99 billion, up from $5.78 billion year-over-year. Analysts from firms like Piper Sandler Companies and KBW have shown interest in the company’s strategic moves, including its stock repurchase program. Great Southern Bancorp continues to focus on strategic investments in technology and managing costs effectively, despite challenges in a competitive lending environment. The company remains committed to maintaining a stable credit portfolio and supporting relationship-based loan growth.
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