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Investing.com - Piper Sandler has raised its price target on Midland States Bancorp (NASDAQ:MSBI) to $21.00 from $18.00 while maintaining a Neutral rating on the stock. The new target aligns with broader analyst expectations, with current targets ranging from $17 to $21. According to InvestingPro analysis, the stock appears slightly undervalued at its current price of $18.74.
The price target increase follows Midland States Bancorp’s recent filing of its 2024 10-K, which included first-half 2025 updates and restated results from 2022 to 2024 reflecting accounting adjustments related to largely discontinued third-party loan origination programs. Despite recent challenges, the bank maintains a 6.56% dividend yield and has raised its dividend for nine consecutive years, as highlighted by InvestingPro data.
Piper Sandler adjusted its 2025 and 2026 operating EPS estimates to $2.60 and $2.80, respectively, from previous estimates of $2.58 and $2.95, citing more conservative loan loss provision and operating expense assumptions that are partially offset by slightly higher net interest income expectations. While currently not profitable, analysts tracked by InvestingPro expect the company to return to profitability this year.
The new $21 price target represents a multiple of 0.95x Piper Sandler’s one-year forward tangible book value estimate, an increase of 0.15x due to improved tangible book value visibility, while maintaining a discount to peers trading at 1.47x.
Piper Sandler maintained its Neutral rating on Midland States Bancorp, citing limited visibility on the bank’s path to peer-level profitability, below-average profitability outlook, leaner capital levels, and recent credit concerns, noting the bank needs to demonstrate more benign credit metrics and rebuild capital levels.
In other recent news, Midland States Bancorp announced preliminary financial results for the first quarter of 2025. The company reported a net income available to common shareholders of $12.6 million or $0.57 per diluted share. Pre-tax, pre-provision earnings stood at $27.0 million, or $1.12 per diluted share, reflecting updates in accounting for third-party lending and servicing arrangements. The company also disclosed the sale of approximately $330 million of GreenSky loans and the implementation of tighter underwriting standards in its equipment finance portfolio. In another development, Midland States Bancorp received a deficiency notification from the Nasdaq Stock Market due to a delay in filing its annual and quarterly financial reports. The company is working to complete its audit for the year ended December 31, 2024, and intends to regain compliance with Nasdaq’s listing rules. Additionally, Sherina M. Edwards resigned from the company’s Board of Directors, effective immediately, without citing disagreements with company operations. These developments highlight ongoing changes and challenges at Midland States Bancorp.
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