Raymond James raises Alerus Financial stock price target to $27 on strong 2Q

Published 29/07/2025, 17:36
Raymond James raises Alerus Financial stock price target to $27 on strong 2Q

Investing.com - Raymond (NSE:RYMD) James raised its price target on Alerus Financial Corp . (NASDAQ:ALRS) to $27.00 from $24.00 on Tuesday, while maintaining an Outperform rating following the company’s second-quarter financial results. According to InvestingPro data, the stock appears undervalued, trading at a P/E ratio of 14.25 with a market capitalization of $585.44 million.

The financial services company delivered what Raymond James characterized as "an impressive quarter," featuring a materially wider net interest margin (NIM) and solid credit metrics that contributed to earnings that exceeded expectations. The company’s strong performance is reflected in its year-to-date return of 22.39%, with InvestingPro analysis revealing several more positive indicators available to subscribers.

Higher noninterest income and lower expenses also drove the earnings per share beat, prompting Raymond James to increase its EPS estimates for Alerus Financial.

Raymond James expressed bullishness on Alerus shares, citing the company’s positioning for superior EPS growth and profitability going forward.

The firm reiterated its Outperform rating on Alerus Financial stock, which it had maintained prior to this price target increase.

In other recent news, Alerus Financial Corp reported stronger-than-expected earnings for the second quarter of 2025. The company achieved adjusted earnings per share of $0.72, surpassing the forecast of $0.55. Revenue also exceeded expectations, reaching $74.79 million compared to the anticipated $69.98 million. Following these results, DA Davidson raised its price target for Alerus Financial to $25.00 from $20.00, while maintaining a Neutral rating. The firm noted a positive net interest margin surprise that contributed to the earnings per share upside. Similarly, Keefe, Bruyette & Woods increased its price target to $25.00 from $22.00, maintaining a Market Perform rating. This adjustment was attributed to stronger pre-provision net revenue and a lower provision, which helped Alerus post operating earnings above market expectations. These developments reflect recent positive momentum for Alerus Financial.

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