Piper Sandler assumes coverage of Univest stock with Neutral rating

Investing.com - Piper Sandler has initiated coverage of Univest Corporation of Pennsylvania (NASDAQ:UVSP) with a Neutral rating and a $34.00 price target. According to InvestingPro data, UVSP currently trades at a P/E ratio of 10.95 and is trading just 1% below its 52-week high of $32.86.

The research firm notes that Univest has maintained a return on assets (ROA) exceeding 1% recently and is targeting further increases in the future.

Piper Sandler forecasts an upward earnings trajectory for Univest with year-over-year growth of 8% in both 2026 and 2027, alongside rising profitability that aligns with the company’s outlook.

The firm projects improvements in 2026 estimates, including a 1.10% ROA, 1.55% pre-provision net revenue ROA, and 11.9% return on tangible common equity, but considers these metrics to be slightly below peer levels.

Piper Sandler notes that Univest’s current valuation (9.8x 2026 estimates versus KRX peers at 10.3x and 1.2x tangible book value versus 1.5x) already reflects this below-peer performance, and the firm will monitor deposit growth matching loan growth profitably before taking a more positive stance on the shares.

In other recent news, Univest Financial Corporation reported impressive third-quarter 2025 earnings, exceeding market expectations. The company announced earnings per share of $0.89, which was higher than the projected $0.76, representing a 17.11% surprise. Additionally, Univest’s revenue reached $83.25 million, surpassing the anticipated $81.75 million by 1.83%. These strong financial results highlight the company’s robust performance during the quarter. In another development, Univest Financial successfully raised $50 million through a private placement of fixed-to-floating rate subordinated notes. These notes, maturing in November 2035, will carry a fixed interest rate of 6.00% for the first five years before transitioning to a floating rate. These recent developments underscore Univest Financial’s strategic financial maneuvers and market resilience.

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