Piper Sandler assumes coverage on NBT Bancorp stock with Neutral rating

Published 08/07/2025, 09:50
Piper Sandler assumes coverage on NBT Bancorp stock with Neutral rating

Investing.com - Piper Sandler has assumed coverage on NBT Bancorp (NASDAQ:NBTB) with a Neutral rating and a price target of $47.00. The regional bank, currently valued at $2.05 billion, trades at a P/E ratio of 14.74 and according to InvestingPro analysis, appears fairly valued.

The research firm highlighted NBT Bancorp’s extensive northeastern branch footprint, which was built through decades of focusing on small and medium-sized markets while avoiding major metropolitan areas such as New York City, Boston, and Philadelphia. This strategic positioning has helped the bank maintain its dividend payments for 40 consecutive years, with increases in the last 12 years.

Piper Sandler noted that while NBT Bancorp historically grew its franchise primarily through organic means, the bank has recently become more active in acquiring smaller peers.

The firm specifically pointed to NBT’s acquisition of Evans Bancorp, Inc. (NYSE:EVBN) as the latest example of this strategy, which expanded the bank’s presence into the upstate New York markets of Buffalo and Rochester.

Piper Sandler projected that once the Evans Bancorp integration is fully complete and cost savings are fully realized, NBT Bancorp should be able to generate profitability levels above approximately 1.25% core ROA and 15% core ROTCE.

In other recent news, NBT Bancorp reported strong financial results for the first quarter of 2025, with earnings per share (EPS) of $0.80, surpassing the forecasted $0.74. The company also exceeded revenue expectations, posting $154.67 million against an anticipated $151.04 million. NBT Bancorp has completed its merger with Evans Bancorp, expanding its branch network with 18 new locations in Western New York. This merger aligns with NBT’s growth strategy and is expected to enhance its service capabilities in Upstate New York. DA Davidson adjusted its outlook on NBT Bancorp by reducing the price target to $53 from $57 but maintained a Buy rating, citing the company’s strong pre-provision net revenue and net interest margin expansion. Additionally, NBT Bancorp announced a quarterly cash dividend of $0.34 per share, continuing its policy of providing shareholder returns. These developments highlight NBT Bancorp’s strategic growth and financial performance in the current period.

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