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On Monday, Keefe, Bruyette & Woods analyst firm raised the price target for Bar Harbor Bankshares (NYSE:BHB) shares from $35.00 to $36.00, while keeping a Market Perform rating on the stock. The adjustment follows Bar Harbor’s recent announcement of its acquisition of Guaranty Bancorp, the parent company of Woodsville Savings Bank.
Earlier in the week, Bar Harbor Bankshares revealed the all-stock purchase of Guaranty Bancorp, valued at approximately $41.6 million. The acquisition includes Woodsville Savings Bank, which operates nine branches in northern New Hampshire. Analysts at Keefe, Bruyette & Woods anticipate that the transaction will be 30% accretive to Bar Harbor’s earnings in 2026, assuming full integration. However, they also expect the deal to be approximately 10% dilutive to tangible book value at closing, with an estimated 2.3-year earn back period.
The Keefe, Bruyette & Woods analyst described the acquisition as a low-risk move into contiguous markets. They highlighted the benefits of adding a solid, low-cost deposit base that Bar Harbor can leverage for loan creation. The analyst also noted that due to the relatively small size of the transaction, which is less than 15% of pro forma assets, Bar Harbor retains flexibility for future opportunities.
The updated price target to $36 reflects these revised estimates and the continued Market Perform rating indicates the analyst’s view of the stock’s potential performance relative to the overall market. The acquisition is seen as a strategic step for Bar Harbor, enabling the bank to expand its footprint and capitalize on synergies from the integration of Woodsville Savings Bank’s operations.
In other recent news, Bar Harbor Bankshares announced its acquisition of Guaranty Bancorp in a deal valued at $41.6 million, which will be completed entirely through a stock exchange. This strategic move is expected to expand Bar Harbor Bankshares’ presence in Northern New Hampshire. The acquisition will integrate approximately $455 million in loans and $530 million in deposits from Guaranty Bancorp. The deal is projected to be about 30% accretive to the bank’s earnings by 2026 and is anticipated to boost the return on assets by 20 basis points. However, it will result in a 10% dilution of tangible book value, with an earnback period estimated at 2.3 years. Bar Harbor Bankshares is expected to maintain a strong post-transaction capital position, with a Common Equity Tier 1 ratio of 10.3%. In addition, Keefe, Bruyette & Woods reiterated its Market Perform rating on the company with a price target of $35.00. These developments highlight the company’s strategic efforts to enhance market share and financial performance.
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