Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - Raymond (NSE:RYMD) James raised its price target on Origin Bancorp (NYSE:OBK) to $42.00 from $38.00 on Friday, while maintaining an Outperform rating following the bank’s second-quarter 2025 results. The stock, currently trading at $37.47, has delivered a solid 13.5% return year-to-date. According to InvestingPro data, the bank appears slightly undervalued based on its Fair Value analysis.
The bank’s Q2 results exceeded Raymond James’ forecasts and consensus estimates on core earnings per share and pre-provision net revenue, despite what the firm described as "noisy" results. A securities portfolio restructuring negatively impacted reported EPS by $0.35 but is expected to have positive implications for net interest margin, net interest income, and future earnings. InvestingPro analysis reveals that two analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the bank’s outlook.
Raymond James cited several positive factors supporting its higher price target, including expectations for relatively flat quarterly noninterest expenses in the second half of 2025 compared to Q2, and a $6 million annual benefit to fee income from Argent starting July 1, 2025, as Origin moves beyond the 20% ownership threshold.
The firm also noted that Origin’s plan to stay under the $10 billion asset threshold by year-end would save approximately $2.75-$3.0 million in service charge income in the second half of 2026, supporting the bank’s target of achieving a return on assets exceeding 1% by Q4 2025.
Raymond James continues to view Origin’s risk-reward profile positively, highlighting its profitability profile and growing franchise value, with 71% of loans held for investment and 55% of deposits in Texas, alongside what it considers a discounted valuation compared to peers.
In other recent news, Origin Bancorp reported its Q2 2025 financial results, which did not meet analysts’ expectations. The company announced earnings per share of $0.47, falling short of the projected $0.78. Revenue also missed the mark, coming in at $83.5 million compared to the anticipated $97.58 million. These developments are significant for investors who closely monitor earnings and revenue figures. The earnings miss has drawn attention from analysts and investors alike. Despite these results, there have been no recent updates on analyst upgrades or downgrades for Origin Bancorp. The company’s financial performance in this quarter may prompt further analysis from financial firms. Investors are likely to keep a close watch on any future announcements or adjustments from the company.
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