TSX runs higher on rate cut expectations
On Thursday, Keefe, Bruyette & Woods analyst Damon DelMonte upgraded the price target on HBT Financial (NASDAQ:HBT) shares, raising it to $28 from the previous $27, while maintaining an Outperform rating on the stock. The adjustment follows HBT Financial's announcement of operating earnings that surpassed market expectations.
HBT Financial reported operating earnings of $0.62 per share, beating estimates by $0.04 per share. Trading at an attractive P/E ratio of 9.8 and offering a 3.4% dividend yield, the stock has caught analysts' attention. This success was attributed to a comprehensive performance improvement across all three components of Pre-Provision Net Revenue (PPNR) and a slightly better-than-expected provision. The company witnessed an 11% quarter-over-quarter increase in loan growth and a positive turn in deposit growth with a 4% rise.
The company's net interest margin also improved more than anticipated, benefiting from a strategic mix shift, higher reinvestment yields, and reduced funding costs. Analysts at Keefe expect these positive trends to persist, which should enhance the company's outlook in the upcoming quarters and contribute to a 4% increase in Net Interest Income (NII).
Taking into account slightly higher expenses, the revised earnings per share (EPS) estimates for HBT Financial are increased by 3% for 2025 and 5% for 2026. Three analysts have recently revised their earnings estimates upward, as revealed by InvestingPro, which offers additional valuable insights and tips about the company's prospects. The firm's decision to lift the target price to $28 reflects their reiterated confidence in the stock's performance and a positive projection for the company's financial trajectory.
In other recent news, HBT Financial has made several significant announcements. The company's recent earnings report revealed an operating income of $0.61 per share, exceeding analyst expectations. This positive outcome was attributed to robust pre-provision net revenue and a reduced provision for credit losses. Additionally, HBT Financial announced a new stock repurchase program set to commence in 2025, allowing the company to buy back up to $15 million of its common stock.
Keefe, Bruyette & Woods maintained an Outperform rating on HBT Financial, citing the potential growth from the planned buybacks. However, DA Davidson downgraded HBT Financial from Buy to Neutral due to concerns about the bank's sensitivity to interest rate changes. Piper Sandler, while maintaining a Neutral rating, adjusted its price target for the company's stock and increased its fourth-quarter 2024 earnings estimate for HBT Financial, citing higher core fee income expectations.
These are recent developments for HBT Financial that investors should take into account. The company also announced a quarterly cash dividend of $0.19 per share, demonstrating its ongoing commitment to returning value to shareholders.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.