Northfield Bancorp stock target raised to $13 at DA Davidson

Published 20/05/2025, 15:32
Northfield Bancorp stock target raised to $13 at DA Davidson

On Tuesday, DA Davidson analyst Manuel Navas increased the price target for Northfield Bancorp (NASDAQ:NFBK), a regional bank with a market capitalization of $505.55 million, to $13.00, up from the previous $12.00, while maintaining a Neutral rating on the stock. The adjustment follows Northfield Bancorp’s recent performance, which included a pre-provision net revenue (PPNR) beat due to stronger net interest income (NII), despite facing weaker fees and higher operational expenses. According to InvestingPro, two analysts have recently revised their earnings estimates upward for the upcoming period.

Northfield Bancorp’s latest financial results revealed a decrease in loans by 3% and deposits by 1% quarter-over-quarter. Nonetheless, the company experienced a robust net interest margin (NIM) expansion of 20 basis points. This significant NIM growth, along with the PPNR beat, contributed to the company’s shares climbing by 10% versus the KRX since the earnings announcement. The bank maintains a solid 4.41% dividend yield and has consistently paid dividends for 18 consecutive years, as revealed by InvestingPro data.

Analysts at DA Davidson anticipate NIM expansion and a return to sustainable loan growth in the second half of 2025, which has led to an increase in their earnings per share (EPS) estimates for Northfield Bancorp. The bank’s strategic management of growth to preserve capital, with a tangible common equity (TCE) ratio of 11.8%, has been noted as effective by the analysts.

Despite the positive outlook on Northfield Bancorp’s performance and the potential for continued growth, the Neutral rating is reiterated by DA Davidson due to the limited upside of 10% to the new price target. The company’s shares reacted favorably to the latest financial results and the revised expectations for the remainder of the year. Trading at a P/E ratio of 15.36x, InvestingPro analysis suggests the stock is slightly undervalued based on its Fair Value model, with additional ProTips and detailed financial metrics available for subscribers.

In other recent news, Northfield Bancorp has announced its financial results and strategic plans that could interest investors. Piper Sandler upgraded Northfield Bancorp’s stock rating from Neutral to Overweight, raising the price target to $14.00. This upgrade is based on the bank’s asset repricing potential and projected earnings growth, with analysts forecasting a 30% or more annual increase in earnings per share over the next two years. Piper Sandler also noted Northfield Bancorp’s strong valuation metrics, including a price to tangible book value per share below 70% and a leverage ratio exceeding 12%.

Additionally, Northfield Bancorp has unveiled a $5 million stock repurchase program. The Board of Directors approved this initiative, which will be executed under a Rule 10b5-1 trading plan, allowing for flexibility in repurchasing shares. The company has the option to suspend, terminate, or modify the buyback plan based on market conditions and liquidity needs. This move underscores Northfield Bancorp’s focus on efficient capital management and enhancing shareholder value. Investors will be closely monitoring the effects of these developments on the company’s financial health and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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