On Wednesday, Piper Sandler showed confidence in Glacier Bancorp (NYSE:NYSE:GBCI) shares by slightly increasing the bank’s price target from $56.00 to $57.00. The firm kept its Neutral rating on the stock. Currently trading at $50.76, the bank’s stock is considered overvalued according to InvestingPro analysis, with a P/E ratio of 31.1x.
Notably, six analysts have recently revised their earnings expectations upward for the upcoming period. The adjustment follows a revision of the estimated operating earnings per share (EPS) for 2025 and 2026, taking into account the Current Expected Credit Losses (CECL) impact from the acquisition of Bank of Idaho (BOID) and related accretion expectations.
Despite current market challenges, Glacier Bancorp has maintained its dividend payments for 40 consecutive years, demonstrating strong financial stability. For deeper insights into GBCI’s financial health and more exclusive tips, check out the comprehensive analysis available on InvestingPro.
The revised EPS estimates are now $2.48 for 2025 and $3.17 for 2026, a change from the previous estimates of $2.58 and $3.08, respectively. The new price target represents an 18.0 times multiple of the projected 2026 earnings per share, aligning with Glacier Bancorp’s historical premium compared to its peers, which averages 11.6 times.
Piper Sandler’s analysis acknowledges the strategic nature of Glacier Bancorp’s acquisition of BOID, which was anticipated given the company’s intention to expand its regional footprint. The deal allows Glacier Bancorp to leverage its strong currency position to make the acquisition mathematically favorable, despite the higher market premium of 44% and the price to tangible book value (P/TBV) multiple of 1.92 times paid for BOID.
The research firm anticipates that Glacier Bancorp will continue to show interest in acquiring banks with assets ranging from $800 million to $3.5 billion within its eight-state, non-metropolitan footprint. This strategy is part of Glacier Bancorp’s ongoing efforts to strengthen its presence in the region and enhance shareholder value.
With a market capitalization of $5.76 billion and analyst targets ranging from $45 to $62, GBCI presents an interesting case study in regional banking expansion. Discover more detailed analysis and financial metrics in the exclusive Pro Research Report, available on InvestingPro.
In other recent news, Glacier Bancorp has been making significant strides in its financial performance and strategic growth. The company recently announced its all-stock acquisition of Bank of Idaho, a move that expands Glacier Bancorp’s footprint in the Pacific Northwest and adds approximately $1.3 billion in assets. This acquisition, valued at $245 million, is in line with the company’s historical growth strategy through acquisitions and is expected to strengthen its market share in Idaho.
In terms of financial performance, Glacier Bancorp reported a 15% and 14% increase in earnings and net income respectively, largely attributed to the acquisition of six Montana branches from Heartland Financial (NASDAQ:HTLF) and an expansion in the loan portfolio. The company also declared a quarterly dividend of $0.33 per share, marking the 159th consecutive payout to its shareholders.
On the analytical front, Truist Securities has revised outlook on Glacier Bancorp, citing core deposit strength, potential for mergers and acquisitions, and favorable loan repricing. Furthermore, the company announced executive leadership changes with Ryan Screnar and Lee Groom assuming new roles. These are among the recent developments for Glacier Bancorp.
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