Meridian Bank stock price target raised to $19 by DA Davidson on NIM expansion

Published 29/07/2025, 14:40
Meridian Bank stock price target raised to $19 by DA Davidson on NIM expansion

Investing.com - DA Davidson raised its price target on Meridian Bank (NASDAQ:MRBK) to $19.00 from $17.00 on Tuesday, while maintaining a Buy rating on the stock. The regional bank, with a market capitalization of $167 million, has shown strong momentum with a 9.11% gain year-to-date. According to InvestingPro analysis, the stock is currently trading near its Fair Value.

The price target increase follows Meridian Bank’s quarterly results, which showed net interest margin (NIM) expansion of 8 basis points quarter-over-quarter, exceeding expectations. The bank also reported solid loan growth of 7%, keeping it on track to meet its high-single-digit growth outlook for 2025. This growth complements the bank’s impressive 17.11% revenue growth over the last twelve months.

DA Davidson highlighted the importance of this growth in diversifying Meridian’s mortgage-heavy business model, which saw fees rise seasonally. Pre-provision net revenue (PPNR) beat expectations due to better net interest income and fees, partially offset by weaker operating expenses.

Meridian Bank shares rose 1% compared to the KRX index since the earnings announcement, supported by the PPNR beat and signs that non-performing loans decreased by 3.3% quarter-over-quarter.

DA Davidson reiterated its Buy rating, describing Meridian as an "above-peer grower" trading at what it considers a low price-to-tangible book value of 0.9x. InvestingPro data reveals additional compelling metrics, including a low P/E ratio relative to near-term earnings growth. Subscribers can access 5 more exclusive InvestingPro Tips for MRBK.

In other recent news, Meridian Corp has released an earnings supplement for the second quarter of 2025, detailing its financial performance for the period ending June 30, 2025. This supplement is available on the company’s website and has been included as Exhibit 99.1 in its Form 8-K filing. Additionally, Meridian Corp held its Annual Meeting of Shareholders, where three Class B directors were elected for a three-year term ending in 2028. The elected directors are George C. Collier, Robert T. Holland, and Denise Lindsay (NYSE:LNN). Shareholders also ratified the company’s independent auditor for the upcoming fiscal year. These developments provide investors with critical insights into Meridian Corp’s governance and financial reporting.

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