Raymond James reaffirms outperform rating for ACNB stock

Published 03/06/2025, 11:46
Raymond James reaffirms outperform rating for ACNB stock

On Tuesday, Raymond (NSE:RYMD) James analysts reaffirmed their Outperform rating and maintained a $47 price target on ACNB Corp. stock (NASDAQ: ACNB), which currently trades at $41.03. The stock has shown strong momentum with a 37% return over the past year. This decision follows virtual meetings with ACNB’s CEO Jim Helt and CFO Jason Weber.

During the meetings, the leadership team expressed a positive outlook, highlighting the company’s strong fundamentals. With revenue growth of 8.7% and a solid dividend track record spanning 37 consecutive years, ACNB demonstrates consistent performance. Despite challenges such as tariffs impacting short-term metrics, ACNB’s robust capital position offers flexibility for repurchases or additional mergers and acquisitions.

The analysts noted that opportunities exist to reprice the recently acquired Traditions (TRBK) deposit base, which could stabilize the net interest margin at levels above peers and mitigate potential rate cut impacts on loan yields.

Raymond James emphasized that ACNB’s strong profitability, solid capital base, and conservative risk profile justify its current premium relative to industry peers.

In other recent news, ACNB Corporation announced an increase in its regular quarterly cash dividend to $0.34 per share, marking a 6.25% rise from the previous quarter. This move reflects the company’s ongoing strategy to enhance shareholder returns through consistent dividend growth. Additionally, ACNB’s merger with Traditions Bancorp is expected to boost its earnings per share, with Piper Sandler upgrading the stock rating from Neutral to Overweight and setting a new price target of $50. The firm anticipates that the merger will lead to a revaluation of ACNB’s shares due to increased earnings potential. Raymond James also initiated coverage on ACNB, assigning an Outperform rating and a price target of $47, citing the company’s strong net interest margin and profitability. Furthermore, ACNB awarded restricted stock to key executives as part of its variable compensation plan to align leadership interests with shareholders. These developments underscore ACNB’s strategic efforts to enhance its financial performance and shareholder value.

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