Gold bars to be exempt from tariffs, White House clarifies
On Friday, Piper Sandler analyst firm upgraded Northfield Bancorp stock, traded on (NASDAQ:NFBK), from Neutral to Overweight and increased the price target to $14.00 from $13.00. The upgrade reflects the firm’s positive outlook on the bank’s asset repricing potential and anticipated earnings growth. With a market capitalization of $456 million and trading at a P/E ratio of 13.2, InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value.
According to Piper Sandler, Northfield Bancorp presents a compelling asset repricing narrative that could unfold through at least 2027 without necessitating additional risk. The bank’s tepid balance sheet growth is not seen as a hindrance to its bottom line expansion. Analysts at Piper Sandler have revised their estimates for the fiscal years 2025 and 2026 to align with the expected repricing and its impact on earnings. The bank has maintained dividend payments for 18 consecutive years, currently offering a 4.87% dividend yield.
The firm’s projections include an ambitious 30% or more annual growth in earnings per share (EPS) over the next two years, despite an anticipated contraction in the loan book. The analyst’s model also forecasts a significant growth year in 2027, with a fourth-quarter 2026 EPS exit rate expected to be $1.36 annualized, suggesting continued repricing benefits. InvestingPro data confirms the company’s profitable status over the last twelve months, with additional insights available to subscribers.
Piper Sandler highlighted Northfield Bancorp’s valuation and financial ratios as additional strengths. The bank’s price to tangible book value per share (P/TVBPS) is below 70%, and it maintains a leverage ratio exceeding 12%. These metrics are seen as providing a substantial margin of safety for investors. The stock’s beta of 0.66 indicates lower volatility compared to the broader market, while maintaining an overall "FAIR" financial health rating according to InvestingPro analysis.
In other recent news, Northfield Bancorp has announced a $5 million stock repurchase program, approved by its Board of Directors to commence on March 3, 2025. This initiative allows the company to buy back its shares under a Rule 10b5-1 trading plan, with the timing and volume of repurchases depending on market conditions and regulatory requirements. Meanwhile, DA Davidson has maintained a Neutral rating for Northfield Bancorp, setting a consistent price target of $13.00. The firm noted the company’s pre-provision net revenue outperformance, driven by improved net interest income and fees, despite some operational expenses. Northfield Bancorp reported a 27% quarter-over-quarter increase in deposit growth and a 10 basis point expansion in its net interest margin, though it saw a 4% decline in loans. Analyst Rissell Gunther from DA Davidson adjusted the price target down from $14.00, citing a slower growth trajectory and fewer anticipated interest rate cuts. Despite this adjustment, the firm sees a modest potential upside for the stock, reflecting a cautious but stable outlook. Northfield Bancorp’s strategic management of growth aims to conserve capital, with a tangible common equity ratio of 11.8%.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.