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Investing.com - Piper Sandler has assumed coverage on Heritage Commerce (NASDAQ:HTBK) with an Overweight rating and a price target of $11.00, aligning with InvestingPro data showing the stock is currently undervalued. Two analysts have recently revised their earnings estimates upward for the upcoming period.
The San Jose, California-based commercial bank, which operates 17 branches across the Bay Area and Northern California with $5.5 billion in assets and a market capitalization of $595 million, received the positive rating based on expectations for continued profitability improvement. InvestingPro analysis reveals strong financial health scores, particularly in cash flow and profitability metrics.
Piper Sandler cited several factors supporting its Overweight rating, including Heritage Commerce’s flexibility to accelerate earnings through potential securities loss trades or more active share buybacks, positive operating leverage, and pristine credit quality.
The research firm also highlighted the bank’s attractive dividend yield of 5.37% as a factor in its assessment, noting that the $11 price target reflects Heritage Commerce’s historical multiple and a premium to peers at 12.0x estimated 2026 earnings per share, or 1.30x tangible book value.
Piper Sandler established earnings per share estimates of $0.74 for 2025, $0.90 for 2026, and $0.98 for 2027, which the firm noted are modestly above consensus Street expectations.
In other recent news, Heritage Commerce Corp reported several key developments. The company announced the appointment of Seth Fonti as Executive Vice President and Chief Financial Officer. Fonti brings over two decades of financial and strategic leadership experience, having previously worked at MUFG Americas Holding Corporation. Additionally, Heritage Commerce Corp declared a regular quarterly cash dividend of $0.13 per share, payable on August 21, 2025, to shareholders of record as of August 7, 2025.
The company also expanded its Board of Directors by appointing Christopher J. Abate, who will serve on the Audit Committee and the Personnel and Compensation Committee. In another significant update, Deborah K. Reuter, the Executive Vice President and Chief Risk Officer, announced her retirement, effective January 5, 2026. Heritage Commerce Corp has begun the search for her successor, with Reuter assisting in the transition process. These developments reflect ongoing changes and strategic decisions within Heritage Commerce Corp.
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