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Investing.com - Keefe, Bruyette & Woods raised its price target on SmartFinancial (NYSE:SMBK) to $40.00 from $38.00 on Tuesday, while maintaining a Market Perform rating on the stock.
The price target adjustment follows SmartFinancial’s quarterly earnings beat of $0.15 per share, driven by higher pre-provision net revenue (PPNR) and lower provision expenses. The bank’s tangible book value grew 6% from the previous quarter, boosted by a gain from the sale of its insurance subsidiary.
SmartFinancial achieved its strategic goals of $50 million in operating revenue and performance targets of 1% return on assets and over 12% return on equity. The company reported end-of-period loan growth of 9.5% and deposit growth of 15%.
While net interest margin (NIM) declined in the reported quarter, Keefe, Bruyette & Woods notes that a bond restructuring and benefits from lower interest rates should help improve NIM to 3.30-3.35% in the next quarter, with further increases of 5-7 basis points per quarter expected in 2026.
The new $40 price target represents 1.5 times tangible book value and 12 times estimated 2026 earnings per share, reflecting the research firm’s 5-7% increase in earnings per share estimates for SmartFinancial.
In other recent news, SmartFinancial Inc . reported its third-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $0.81 compared to the forecasted $0.72. The company, however, slightly missed its revenue projections, recording $51.06 million in revenue against the expected $51.09 million. In addition to its earnings report, SmartFinancial announced a quarterly cash dividend of $0.08 per share, payable on December 2, 2025, to shareholders of record as of November 17, 2025. These developments highlight the company’s ongoing financial activities and shareholder rewards. The company’s recent performance and dividend announcement may be of interest to investors keeping an eye on SmartFinancial’s fiscal strategies.
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