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On Monday, DA Davidson analyst Peter Winter adjusted the price target for M&T Bank (NYSE:MTB) shares, bringing it down to $189 from the previous $205, while retaining a Neutral rating on the stock. The revision follows M&T Bank’s announcement of reduced net interest income (NII) guidance for 2025 due to anticipated lower average loan and deposit levels. Despite this, the bank anticipates an increase in NII throughout the year 2025.
Winter noted that M&T Bank has not altered its noninterest expense or fee income guidance, with fee revenues expected to be at the higher end of the bank’s projections. The bank is still on track to achieve positive operating leverage (POL) within the current year and has identified potential expense reductions that could be implemented if revenue continues to fall short of expectations set in December, which projected a 100% to 150% range.
The bank’s credit metrics have shown signs of improvement, with a decrease in nonperforming assets (NPAs) and criticized loans. These positive trends in credit quality were highlighted as contributing factors to maintaining the Neutral rating on M&T Bank’s shares.
Winter’s commentary concluded with the rationale behind the new price target, stating that it corresponds to a target price-to-earnings (P/E) ratio of 11.0 times DA Davidson’s 2026 earnings per share (EPS) estimate for M&T Bank. This adjustment reflects the latest financial outlook provided by the bank and its expected performance in the coming years.
In other recent news, M&T Bank Corp reported its first-quarter 2025 earnings, which fell short of analyst expectations. The bank’s earnings per share (EPS) came in at $3.38, slightly below the forecasted $3.42. Revenue for the quarter was $2.32 billion, missing the expected $2.35 billion. Despite this minor miss, M&T Bank executed $662 million in share repurchases during the quarter and maintained a strong liquidity position. The bank’s net income decreased to $584 million from $681 million in the previous quarter. Analysts from various firms have noted the bank’s cautious optimism in its full-year guidance, projecting taxable equivalent net interest income between $7.05 billion and $7.15 billion. M&T Bank remains focused on disciplined lending and maintaining diversified fee income amid economic uncertainties.
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