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On Wednesday, Keefe, Bruyette & Woods analyst Damon DelMonte adjusted the price target on Park National (NYSE:PRK) shares, bringing it down to $178.00 from the previous $187.00. Despite the reduction, the firm maintained a Market Perform rating on the stock. DelMonte’s assessment followed Park National’s recent earnings report, which revealed operating earnings of $2.27 per share, surpassing expectations. The bank has demonstrated consistent profitability, with InvestingPro showing a strong financial health score and an impressive 39-year track record of consecutive dividend payments, currently yielding 2.47%. The earnings beat was attributed to better pre-provision net revenue (PPNR), which was driven by stronger revenues and higher expenses, although it was partially offset by an increased provision for loan losses and a higher tax rate.
The bank’s net interest margin (NIM) saw an improvement, rising by 6 basis points to 4.51% during the quarter. The report also highlighted a solid loan growth of 4% on a linked quarter annualized (LQA) basis and a 2% increase in deposits, including off-balance sheet deposits, on the same LQA basis.
Looking forward to 2025, DelMonte noted a more optimistic run rate on NIM, which is expected to enhance the bank’s net interest income (NII) projections. The forecast for fee income was also increased. However, these positive adjustments were tempered by expectations of higher expenses and a slightly higher provision for loan losses.
In conclusion, the adjustments led to an increase in the earnings estimates for Park National for the years 2025 and 2026 by 2% and 3%, respectively. With revenue growth of 9.34% and analysts forecasting EPS of $8.82 for FY2025, the bank continues to show solid fundamentals. The revised price target of $178 reflects these updated estimates while reaffirming the Market Perform rating on the stock. For deeper insights into Park National’s valuation metrics and additional ProTips, visit InvestingPro.
In other recent news, Park National Corporation, an Ohio-based commercial banking institution, has announced its participation at the Piper Sandler East Coast Financial Services Conference. President Matthew R. Miller and Chief Financial Officer Brady T. Burt will meet with investors at the event. The company has prepared presentation slides for the conference, which have been furnished in a Current Report on Form 8-K, according to the Regulation FD Disclosure.
These slides, inclusive of a "Safe Harbor Statement," are available for public viewing on the company’s website under the "SEC Filings" section. The company has further clarified that the information shared in the 8-K form and the presentation should not be incorporated by reference into any registration statement filed under the Securities Act of 1933.
Park National Corporation has emphasized that the presentation material is intended to inform investors about its current business and financial status. It forms part of their ongoing investor relations activities. Investors and interested parties are encouraged to review these presentation slides for insights into the company’s current financial health and business strategies. This recent development underscores Park National Corporation’s commitment to maintaining transparent communication with the investment community.
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