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Investing.com - DA Davidson has reduced its price target on M&T Bank (NYSE:MTB) to $222.00 from $224.00 while maintaining a Neutral rating on the stock.
The firm notes that 2026 is shaping up to be a better year for M&T Bank as commercial real estate headwinds should transform into tailwinds, potentially driving stronger average earning asset growth.
DA Davidson points out that management expects continued momentum in net interest margin expansion and fee income growth, with credit trends showing improvement through declining criticized loans.
The research firm highlights that as bank merger and acquisition activity increases, M&T Bank has been transparent about its intentions to participate, though CFO Daryl Bible indicated nothing was imminent.
DA Davidson believes this potential M&A involvement could serve as an overhang on the stock, which factored into its decision to maintain a Neutral rating while slightly reducing the price target.
In other recent news, M&T Bank reported its earnings for the third quarter of 2025, surpassing analysts’ expectations. The bank achieved an earnings per share (EPS) of $4.87, exceeding the forecasted $4.42. Additionally, M&T Bank’s revenue reached $2.51 billion, surpassing the anticipated $2.44 billion. Despite these strong results, analysts have adjusted their price targets for the bank. Wolfe Research lowered its target to $217, maintaining an Outperform rating, citing a broad de-rating of the banking sector. Similarly, Jefferies reduced its target to $215, while keeping a Buy rating, noting mixed guidance for the fourth quarter of 2025. M&T Bank’s net interest margin guidance was slightly above Jefferies’ estimate. These developments provide investors with critical insights into the bank’s recent performance and future outlook.
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