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On Tuesday, Piper Sandler initiated coverage on Northpointe Bancshares (NYSE:NPB) with an Overweight rating and set a price target of $16.50. The new rating comes after the company’s recent initial public offering (IPO) in mid-February, when Northpointe Bancshares began trading on the stock market. Currently trading at $13.63, near its 52-week low of $13.50, the stock has caught analysts’ attention. InvestingPro data indicates the stock’s RSI suggests overbought territory, one of several technical insights available to subscribers. Piper Sandler’s analysts highlighted Northpointe’s focus on mortgage banking, particularly warehouse lending, residential lending, servicing, and its specialized All-in-One (AIO) Loan product.
Founded in 1999, Northpointe Bancshares operates primarily through digital channels and maintains loan production offices in 23 cities across 15 states. With a market capitalization of $497.49 million and trailing twelve-month revenue of $175.55 million, the company has demonstrated profitability with earnings per share of $1.46. The analysts at Piper Sandler expressed their belief that Northpointe presents a unique investment opportunity. For deeper insights into Northpointe’s financial health and growth potential, InvestingPro subscribers have access to dozens of additional metrics and analysis tools. They cited the bank’s solid performance across various economic cycles and pointed to potential near-term catalysts. These include the possibility of Northpointe being added to the Russell 2000 index, as well as the potential benefit from episodic rate movements in 2025 that could drive higher loan originations.
Piper Sandler’s coverage anticipates that these factors, combined with the current trading at a discount to pro forma tangible book value, make Northpointe an attractive stock. The company’s P/E ratio of 9.92 suggests a relatively modest valuation compared to industry peers. The analysts projected earnings per share (EPS) for Northpointe Bancshares to be $2.19 in 2025, $2.58 in 2026, and $2.92 in 2027. These forecasts reflect the firm’s positive outlook on the bank’s financial performance over the next few years.
The initiation of coverage by Piper Sandler provides investors with a new analytical perspective on Northpointe Bancshares as it starts its journey as a publicly traded company. The Overweight rating and the $16.50 price target suggest that the firm sees significant growth potential for the bank’s stock in the coming years.
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