Nicolet Bankshares target raised to $118 by Keefe Bruyette

Published 17/04/2025, 14:58
Nicolet Bankshares target raised to $118 by Keefe Bruyette

On Thursday, Keefe, Bruyette & Woods analyst Damon Del Monte increased the price target for Nicolet Bankshares (NASDAQ:NCBS) (NYSE: NIC (NASDAQ:EGOV)) to $118 from $115, while maintaining a Market Perform rating on the stock. Del Monte praised the company’s recent financial performance, noting that Nicolet had delivered another exceptional quarter.

Nicolet Bankshares reported operating earnings of $2.10 per share, surpassing analysts’ expectations. Trading at a P/E ratio of 14.32x, the bank has demonstrated impressive financial health, earning a GREAT rating from InvestingPro’s comprehensive analysis. This success was attributed to strong pre-provision net revenue (PPNR), which compensated for a slightly higher provision for credit losses. The robust PPNR was due to substantial loan growth and a consistent margin, which contributed to an increase in net interest income (NII). Cost containment efforts across various categories also played a role in the company’s financial results.

The bank experienced solid loan growth of approximately 7% on a linked quarter annualized (LQA) basis, showcasing positive momentum in both commercial and industrial (C&I) loans, which grew by 15% LQA, and commercial real estate (CRE) loans, which saw an 8% LQA increase. Credit quality remained strong, with flat nonperforming assets (NPAs) and minimal net charge-offs (NCOs). The higher provision mentioned by Del Monte was driven by the growth in loans.

Looking ahead, Del Monte anticipates that Nicolet will continue to perform well, with expectations of a gradually increasing margin, mid-single-digit loan growth, controlled expenses, and stable credit trends. The bank’s strong momentum is reflected in its impressive 43% one-year return, and three analysts have recently revised their earnings estimates upward. Based on these projections, the analyst modestly raised earnings estimates and adjusted the price target upward to reflect the bank’s consistent performance. For more detailed insights and additional ProTips about Nicolet Bankshares, visit InvestingPro.

In other recent news, Nicolet Bankshares reported strong financial results, surpassing expectations across multiple metrics. The company announced fourth-quarter earnings per share of $2.19, beating consensus estimates of $1.97. This performance was driven by an expansion in net interest margin and exceptional credit quality. Maxim Group responded by raising their price target for Nicolet Bankshares to $131, citing the company’s operational strength and strategic acquisitions. Similarly, Keefe, Bruyette & Woods increased their price target to $115, highlighting robust revenue growth and favorable credit trends. Piper Sandler also adjusted their price target to $120, acknowledging Nicolet’s strong return on assets and return on tangible common equity. The firm’s analysis pointed to Nicolet Bankshares’ ability to drive organic growth through market share gains and a holistic business model. Analysts have updated their earnings estimates for 2025 and 2026, reflecting optimism about the company’s future performance. These developments indicate a positive outlook among analysts, with varying degrees of enthusiasm reflected in the revised price targets.

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