Piper Sandler maintains $68 target on The Bancorp stock

Published 27/05/2025, 16:22
Piper Sandler maintains $68 target on The Bancorp stock

On Tuesday, Piper Sandler reaffirmed its positive stance on The Bancorp (NASDAQ:TBBK), maintaining both an Overweight rating and a $68.00 price target for the company’s shares, representing potential upside from the current price of $52.07. The endorsement comes after a series of investor meetings in New York and Boston last week with The Bancorp’s senior management, which provided Piper Sandler analysts with a deeper understanding of the bank’s near-term earnings potential. According to InvestingPro data, the stock trades at an attractive P/E ratio of 11.6x relative to its expected earnings growth.

During these meetings, The Bancorp’s management team outlined the factors expected to drive the bank’s earnings in the near future. This interaction has bolstered Piper Sandler’s conviction in the bank’s stock, leading to the reiteration of the Overweight rating. The Bancorp continues to be one of Piper Sandler’s top stock picks. The company’s strong financial position is reflected in its "GREAT" overall financial health score on InvestingPro, which offers comprehensive analysis through its Pro Research Report.

The analyst from Piper Sandler highlighted The Bancorp’s position as a "Fintech Gem in the Banking Space," emphasizing the bank’s solid prospects for growth. According to the analyst, the recent discussions did not present any reasons to doubt the bank’s ability to sustain a growth trajectory in its bottom-line earnings, which are expected to increase by over 20%.

Furthermore, The Bancorp’s aggressive strategy on share buybacks was also noted, with a targeted return of earnings at 100%. This approach is seen as a positive signal for the bank’s commitment to shareholder value.

In summary, Piper Sandler’s outlook for The Bancorp remains robust, with the bank’s strategic initiatives and financial performance aligning with the firm’s expectations for continued growth and profitability. The Bancorp’s focus on fintech innovation and efficient capital return mechanisms stand as key factors underpinning this favorable assessment.

In other recent news, The Bancorp reported its first quarter 2025 earnings, revealing a mixed financial performance. The company achieved earnings per share (EPS) of $1.19, slightly below the forecast of $1.21. However, The Bancorp exceeded revenue expectations, reporting $175.38 million compared to the forecasted $144.55 million. This revenue beat is a significant development, highlighting strong operational performance. The Bancorp also announced a $150 million stock buyback authorization for the year, demonstrating its commitment to shareholder value. Additionally, the company confirmed its 2025 EPS guidance of $5.25. In terms of market activity, the company’s stock experienced a 2.71% increase during regular trading hours following the earnings release. Analyst firm Piper Sandler engaged with the company regarding its fintech loan yields and deposit cost volatility, reflecting ongoing interest in The Bancorp’s strategic direction. The Bancorp’s FinTech Solutions group reported an 18% increase in Gross Dollar Volume, further emphasizing the company’s growth in this sector.

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

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