Chinese chip stocks jump as Beijing reportedly warns against Nvidia’s H20
On Tuesday, Atlantic Union Bankshares (NYSE:AUB), a regional bank with a market capitalization of $2.34 billion trading at a P/E ratio of 13.6x, received an upgrade in its stock rating by analysts at Raymond (NSE:RYMD) James, moving from Outperform to Strong Buy. Accompanying this upgrade, the firm also increased its price target for the bank’s shares from $37.00 to $41.00. According to InvestingPro data, analysts maintain a bullish consensus on the stock.
The upgrade comes despite Atlantic Union Bankshares’ shares experiencing a 15.7% decline year-to-date, which contrasts with the broader KRE index’s 3% decrease. Analysts at Raymond James attribute the stock’s underperformance to concerns that the Department of Government Efficiency (DOGE) might negatively impact the D.C. economy. Additionally, there were apprehensions regarding Atlantic Union’s acquisition of Sandy Spring in the D.C. suburbs. InvestingPro analysis suggests the stock is currently fairly valued, with multiple proprietary indicators available to subscribers.
Recent discussions with Atlantic Union Bankshares’ management have provided a more positive outlook. The bank’s leadership reaffirmed their 2025 guidance and highlighted several optimistic indicators. These include a growing loan pipeline, an expanding core net interest margin (NIM), strong asset quality, and a robust capital position that could potentially lead to share repurchases. The bank has demonstrated strong financial performance with 16.6% revenue growth and maintains an impressive 32-year track record of consistent dividend payments, including 14 consecutive years of dividend increases.
The analysts’ decision to upgrade the stock was not influenced by reports of activism from Teton Capital, as noted by Bloomberg. Instead, the analysts emphasized the bank’s attractive valuation and the anticipated improvement in its financial performance over the coming twelve months as key reasons for their upgraded rating and increased price target. With analyst price targets ranging from $32 to $46, and additional insights available through InvestingPro’s comprehensive research reports, investors can access deeper analysis of the company’s growth potential and financial health metrics.
In other recent news, Atlantic Union Bankshares Corporation reported its first-quarter 2025 earnings, revealing an earnings per share (EPS) of $0.57, which missed the forecast of $0.72. The company’s revenue also fell short, coming in at $217.19 million against an expected $221.4 million. Despite these setbacks, Atlantic Union completed its acquisition of Sandy Spring Bancorp (NASDAQ:SASR), enhancing its geographic footprint across Maryland, Virginia, and North Carolina. In terms of analyst ratings, Jefferies initiated a Buy rating for Atlantic Union with a price target of $37, citing the bank’s strong credit quality and potential for margin expansion. Raymond James maintained its Outperform rating with the same price target, noting the bank’s ability to manage its loan portfolio effectively despite mixed first-quarter results. Additionally, the bank announced the appointment of Bradley S. Haun as the new chief risk officer, succeeding Sherry Williams. In another leadership change, Robert M. Gorman, the company’s CFO, is set to retire by March 2026. These developments reflect Atlantic Union’s ongoing strategic adjustments amid economic uncertainties in its core market areas.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.