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Investing.com - Keefe, Bruyette & Woods raised its price target on Glacier Bancorp (NYSE:GBCI) stock to $52.00 from $50.00 on Friday, while maintaining a Market Perform rating.
The price target increase reflects expected accretion from Glacier Bancorp’s transaction with GNTY, which will expand the bank’s footprint into Texas. KBW raised its 2026 earnings estimate by 7% based on the anticipated financial benefits of the acquisition. With a market capitalization of $5.18 billion and revenue growth of 8.47% over the last twelve months, Glacier Bancorp shows strong fundamental metrics. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with 12 more exclusive insights available to subscribers.
KBW views the transaction as financially attractive, noting it would cause minimal tangible book value per share dilution while providing mid-single digit earnings accretion under the new CECL methodology. The firm considers the acquisition to be relatively low-risk given Glacier’s experience as an acquirer. Notably, InvestingPro data shows the company has maintained dividend payments for 41 consecutive years, demonstrating consistent financial stability.
The research firm highlighted Glacier Bancorp’s acquisition track record, which includes 13 deals in the past 10 years. Its most recent acquisition of BOID closed in April, approximately 3.5 months after announcement.
GNTY represents about 11% of legacy Glacier Bancorp’s size, which KBW describes as "digestible" with conservative cost-saving projections. The firm also noted that GNTY is culturally aligned with Glacier and meets the criteria the bank typically seeks in terms of acquisition size and geography.
In other recent news, Glacier Bancorp announced its first-quarter 2025 earnings, reporting a diluted earnings per share (EPS) of $0.48, slightly above analysts’ expectations of $0.47. However, the company’s revenue fell short of projections, coming in at $222.6 million compared to the anticipated $227.2 million. Glacier Bancorp has also declared a quarterly dividend of $0.33 per share, marking its 161st consecutive dividend payment. In a significant strategic move, Glacier Bancorp is set to acquire Guaranty Bancshares (NYSE:GNTY) in an all-stock deal valued at approximately $476.2 million, marking its entrance into the Texas market. The acquisition is expected to be accretive to earnings per share with minimal tangible book value dilution. DA Davidson reiterated its Buy rating on Glacier Bancorp, underscoring the potential for continued growth through this acquisition. The transaction, pending regulatory and shareholder approvals, is anticipated to close in the fourth quarter of 2025. Glacier Bancorp’s President and CEO, Randy Chesler, highlighted the strategic importance of the Texas market, citing its strong growth prospects and business-friendly environment.
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