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On Tuesday, Piper Sandler adjusted its outlook on M&T Bank (NYSE:MTB) shares by reducing the price target from $220.00 to $210.00. Despite the lowered target, the firm maintained an Overweight rating on the stock.
M&T Bank reported its first-quarter earnings for 2025, disclosing earnings per share (EPS) of $3.32. This figure slightly fell short of Piper Sandler’s estimate of $3.35 and the consensus estimate of $3.40. The bank’s earnings were impacted by a $0.15 miss in fees, which was somewhat counterbalanced by a $0.10 beat on expense management.
The shortfall in fee income was attributed to the absence of a Bayview distribution in the quarter, rather than a fundamental weakness in the bank’s core fee-generating capacity. Management at M&T Bank has indicated expectations for fee income to remain at the higher end of their projected range.
The bank’s full-year guidance experienced a minor adjustment, with a small decrease in net interest income (NII), a move that did not come as a surprise to analysts since the consensus expectations had already shifted in that direction.
Despite the adjustments, Piper Sandler highlighted several positive trends for M&T Bank, including a continued emphasis on expense management and the achievement of positive operating leverage. The bank also demonstrated relatively strong buyback activity, which is often seen as a sign of confidence in the company’s financial health and future prospects.
In other recent news, M&T Bank reported its first-quarter 2025 earnings, which fell short of analyst expectations. The bank recorded an earnings per share (EPS) of $3.38, slightly below the forecasted $3.42, and revenue of $2.32 billion, missing the expected $2.35 billion. Despite these shortfalls, M&T Bank executed $662 million in share repurchases during the quarter, maintaining a strong liquidity position. Analyst firm Keefe, Bruyette & Woods (KBW) adjusted their price target for M&T Bank from $210 to $200, retaining a Market Perform rating, citing a smaller balance sheet and lower net interest income as influencing factors. Meanwhile, DA Davidson also revised their price target for the bank from $205 to $189, maintaining a Neutral rating due to reduced net interest income guidance for 2025. The bank’s credit metrics showed improvement, with a decrease in nonperforming assets and criticized loans, contributing to the maintenance of the Neutral rating. Despite the financial challenges, M&T Bank remains focused on achieving positive operating leverage and managing expenses effectively. These developments reflect the bank’s ongoing efforts to navigate economic uncertainties while maintaining financial stability.
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