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Looking ahead to 2025, the company's initial guidance anticipates a weaker first-quarter EPS, with anticipated improvements starting in the second quarter and a stronger performance in the second half of the year. With a market capitalization of $1.8 billion, Analyst Michael K. Diana highlighted several factors influencing the early 2025 outlook. The ten new commercial banking teams that were integrated in April 2024 are expected to start turning a profit by the end of the first quarter of 2025. Additionally, a regulatory agreement from August 2024 is likely to necessitate higher expenses in the first quarter. The bank also plans to adjust its deposit mix in the first half of the year without significant balance sheet growth.These elements, which are seen as headwinds in the first half of 2025, are anticipated to become tailwinds in the latter half. Based on these projections, Maxim Group has increased its 2025 EPS estimate for Customers Bancorp (NYSE:CUBI) to $6.34 from $6.09. The revised 12-month price target of $80 is derived from an annualized estimate of $7.12 for the second half of 2025, corresponding to a forward-looking P/E multiple of 11.2 times, up from the previous multiple of 10.7 times. For detailed valuation analysis and comprehensive financial metrics, explore the full research report available on InvestingPro.
Looking ahead to 2025, the company's initial guidance anticipates a weaker first-quarter EPS, with anticipated improvements starting in the second quarter and a stronger performance in the second half of the year. With a market capitalization of $1.8 billion, Analyst Michael K. Diana highlighted several factors influencing the early 2025 outlook. The ten new commercial banking teams that were integrated in April 2024 are expected to start turning a profit by the end of the first quarter of 2025. Additionally, a regulatory agreement from August 2024 is likely to necessitate higher expenses in the first quarter. The bank also plans to adjust its deposit mix in the first half of the year without significant balance sheet growth.These elements, which are seen as headwinds in the first half of 2025, are anticipated to become tailwinds in the latter half. Based on these projections, Maxim Group has increased its 2025 EPS estimate for Customers Bancorp to $6.34 from $6.09. The revised 12-month price target of $80 is derived from an annualized estimate of $7.12 for the second half of 2025, corresponding to a forward-looking P/E multiple of 11.2 times, up from the previous multiple of 10.7 times. For detailed valuation analysis and comprehensive financial metrics, explore the full research report available on InvestingPro.
Looking ahead to 2025, the company's initial guidance anticipates a weaker first-quarter EPS, with anticipated improvements starting in the second quarter and a stronger performance in the second half of the year. Analyst Michael K. Diana highlighted several factors influencing the early 2025 outlook. The ten new commercial banking teams that were integrated in April 2024 are expected to start turning a profit by the end of the first quarter of 2025. Additionally, a regulatory agreement from August 2024 is likely to necessitate higher expenses in the first quarter. The bank also plans to adjust its deposit mix in the first half of the year without significant balance sheet growth.
These elements, which are seen as headwinds in the first half of 2025, are anticipated to become tailwinds in the latter half. Based on these projections, Maxim Group has increased its 2025 EPS estimate for Customers Bancorp to $6.34 from $6.09. The revised 12-month price target of $80 is derived from an annualized estimate of $7.12 for the second half of 2025, corresponding to a forward-looking P/E multiple of 11.2 times, up from the previous multiple of 10.7 times.
In other recent news, Customers Bancorp reported impressive third-quarter earnings, with operating earnings per share (EPS) reaching $1.26, surpassing expectations. This was attributed to a lower provision for credit losses and reduced tax rates. However, the company witnessed a quarter-over-quarter decline in net interest margin (NIM) of 23 basis points due to the sale of a consumer loan portfolio and a lower accretable yield.
Recent developments show financial firms adjusting their outlook on Customers Bancorp. Notably, Stephens increased its stock price target to $55.00, keeping an Equal Weight rating. This adjustment was made following a review of the company's third-quarter earnings and future projections. In contrast, both Piper Sandler and DA Davidson lowered their targets following the earnings report, citing complexities including a shortfall in net interest income.
The bank's strategic shift towards becoming a specialized commercial bank continues, with significant expansion in the venture banking segment and robust credit quality. However, increased compliance and technology expenses are anticipated to impact non-interest expenses in the fourth quarter. With these recent developments, investors are keenly observing Customers Bancorp's progress and future performance.
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