Monday - Maxim Group has increased the price target for Nicolet Bankshares (NASDAQ:NCBS) (NYSE: NIC (NASDAQ:EGOV)) to $131.00 from the previous $124.00, while reiterating a Buy rating on the stock. The adjustment comes after Nicolet reported robust fourth-quarter 2024 earnings that surpassed both consensus and the firm’s expectations. The bank, currently valued at $1.69 billion, has demonstrated strong momentum with a 36.31% price return over the past year.
Nicolet Bankshares announced on Saturday its fourth-quarter results, posting earnings per share (EPS) of $2.19, which exceeded the consensus estimate of $1.97 and Maxim Group’s forecast of $1.92. The impressive results were attributed to an expansion in the net interest margin (NIM) by 10 basis points and exceptional credit quality, evidenced by negligible net charge-offs. InvestingPro data shows the company maintains strong profitability with trailing twelve-month diluted EPS of $8.05 and impressive revenue growth of 27.15%.
In light of these strong quarterly figures, Maxim Group has revised its 2025 GAAP EPS estimate for Nicolet upward to $9.00 from $8.60. The firm’s optimism is based on the recent performance and the anticipation of an even wider NIM moving forward.
The new price target of $131.00 is primarily derived from the updated 2025 EPS estimate. Maxim Group justifies this target by applying a multiple of 14.6 times to the projected 2025 earnings, slightly up from the previous multiple of 14.4 times. The premium multiple reflects Nicolet Bankshares’ history of accretive acquisitions, which have contributed to its strong financial track record. Trading at a P/E ratio of 13.4, InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value, with additional insights available through their comprehensive valuation models.
Maxim Group’s analyst has expressed confidence in Nicolet’s operational strength and strategic acquisitions, which have consistently added value to the company’s bottom line. The firm’s new price target suggests a positive outlook for Nicolet Bankshares’ stock performance in the upcoming year.
In other recent news, Nicolet Bankshares has been a topic of discussion following Piper Sandler’s decision to raise its price target for the bank to $120, maintaining a Neutral rating. The bank’s strong fourth quarter performance in 2024 contributed to this adjustment, with a notable 10% pre-provision net revenue beat primarily due to an increase in net interest income. Nicolet Bankshares also reported mid-to-high single-digit annualized growth in both loans and core deposits, demonstrating solid operating leverage and top-tier credit metrics.
Recent developments indicate that Nicolet Bankshares has been performing well, with a robust return on assets and return on tangible common equity at 1.55% and 17.5%, respectively. The bank has also shown impressive revenue growth of 28.9% over the last twelve months. Piper Sandler’s analyst, Nathan Rice, highlighted the bank’s potential for future mergers and acquisitions, and the possibility to increase capital returns to shareholders.
Piper Sandler has adjusted the estimated earnings per share for Nicolet Bankshares for 2025 and 2026, raising them by 7% and 6% to $8.25 and $8.45, respectively. The new price target is based on a 14.5 times multiple of the firm’s 2025 earnings estimate, which is a premium compared to peer banks, thus underscoring Nicolet Bankshares’ top-tier attributes. This recent news provides investors with a glimpse into the bank’s strong financial performance and future prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.