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Investing.com - DA Davidson has raised its price target on M&T Bank (NYSE:MTB) to $207.00 from $189.00 while maintaining a Neutral rating on the stock.
The price target increase follows M&T Bank’s quarterly earnings report, which showed core EPS beating consensus estimates by $0.21, driven primarily by stronger fees and lower credit costs.
Despite the positive earnings results, M&T Bank slightly lowered its 2025 net interest income (NII) guidance due to weaker than expected loan growth, which overshadowed the otherwise solid quarter.
The bank increased its share repurchase activity to $1.1 billion compared to $662 million in the first quarter of 2025, while credit trends continued to improve with a decline in criticized loans and lowered full-year net charge-off guidance.
DA Davidson’s new price target of $207 represents a target price-to-earnings ratio of 11.0 times the firm’s 2026 earnings per share estimate for M&T Bank.
In other recent news, M&T Bank reported better-than-expected earnings for the second quarter of 2025, with diluted net operating earnings per share reaching $4.28, surpassing the forecast of $3.99. The company’s revenue also exceeded expectations, coming in at $2.4 billion compared to the projected $2.39 billion. BofA Securities raised its price target for M&T Bank to $228 from $223, maintaining a Buy rating, following the strong earnings results. The earnings beat was attributed to lower credit costs and accelerated share buybacks totaling $1.1 billion, which were higher than anticipated. M&T Bank’s pre-provision net revenue aligned with expectations, supported by a 2.5% growth in fee income, despite a decline in net interest income. The bank revised its fiscal year 2025 net interest income guidance to $7 billion, with expenses expected to trend toward the lower end of the $5.4-5.5 billion range. BofA Securities increased its fiscal year 2025 earnings per share estimate to $16.30 from $15.90, citing the second-quarter performance. Additionally, the firm raised its fiscal year 2026 estimate to $19.00 from $18.65, driven by a lower expected share count.
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