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Investing.com - Citi has raised its price target on M&T Bank (NYSE:MTB) to $215.00 from $212.00 while maintaining a Neutral rating on the stock.
The price target increase follows M&T Bank’s recent quarterly results, which Citi described as strong despite a softer net interest income (NII) print and a lower floor on the 2025 NII range.
M&T Bank underperformed in the market following its earnings release, with shares declining approximately 2.4% compared to the KBW Bank Index (BKX) which rose 0.3%.
Citi noted it has lowered its near-term deposit beta estimates for M&T Bank due to higher funding costs creating pressure on net interest income, though this is partially offset by better balance sheet growth.
The price target adjustment reflects a lower cost of equity assumption, but Citi remains "on the sidelines" with its Neutral rating, citing only slight potential upside to consensus estimates for 2026.
In other recent news, M&T Bank reported strong financial performance in the second quarter of 2025, with earnings per share (EPS) reaching $4.28, surpassing the forecast of $3.99. The company’s revenue also exceeded expectations, totaling $2.4 billion compared to the projected $2.39 billion. Following these results, BofA Securities raised its price target for M&T Bank to $228, maintaining a Buy rating, while DA Davidson increased its target to $207 with a Neutral rating. Despite the positive earnings, M&T Bank slightly lowered its 2025 net interest income guidance due to weaker loan growth expectations. The bank also executed $1.1 billion in share repurchases, up from $662 million in the previous quarter, indicating robust capital management. Credit trends improved with a reduction in criticized loans and a decrease in net charge-off guidance. BofA Securities adjusted its earnings per share estimates for M&T Bank, increasing the 2025 estimate to $16.30 and the 2026 estimate to $19.00, citing a lower expected share count. These developments reflect M&T Bank’s strategic focus on operational efficiency and shareholder value.
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