ServisFirst Bancshares stock price target raised to $90 by Piper Sandler

Investing.com - Piper Sandler raised its price target on ServisFirst Bancshares (NYSE:SFBS) to $90.00 from $84.00 while maintaining a Neutral rating on the stock. According to InvestingPro analysis, the $4.6 billion market cap bank is currently trading near its Fair Value, with a favorable Financial Health Score of "GOOD."

The research firm cited ServisFirst’s robust pre-provision net revenue (PPNR) and expense management in its decision to increase the price target. Piper Sandler noted that ServisFirst continues to deliver top-quartile results with strong loan growth, an efficient operating model, and high profitability levels. InvestingPro data confirms this strong performance, highlighting the bank’s impressive track record of maintaining dividend payments for 12 consecutive years.

ServisFirst’s second quarter 2025 results demonstrated a 1.50% return on assets (ROA) and over 15.5% return on equity (ROE), accompanied by nearly 11% loan growth. These metrics prompted Piper Sandler to increase its 2025/2026 earnings estimates to $5.13/$6.00 from previous estimates of $4.95/$5.57. The bank’s attractive PEG ratio of 0.91 suggests it’s trading at a favorable valuation relative to its growth prospects.

The research firm expects ServisFirst to experience a higher net interest margin (NIM) trajectory and continued impressive expense management. Piper Sandler indicated that upside in the net interest margin should occur regardless of interest rate cuts.

The firm added that ServisFirst’s margin improvement could be modestly higher if and when interest rate cuts eventually materialize.

In other recent news, ServisFirst Bancshares Inc. reported its second-quarter 2025 earnings, where the company met earnings per share (EPS) expectations but fell short on revenue. The EPS stood at $1.21, aligning with forecasts, while the revenue reached $132.11 million, which was below the anticipated $140.26 million. These recent developments highlight the company’s struggle to meet revenue projections despite achieving expected earnings per share. The revenue miss is a significant point of concern for investors, as it impacts overall financial performance. This shortfall in revenue has been noted by analysts and may influence future evaluations. Although the earnings per share met expectations, the revenue gap draws attention to the company’s financial strategy. Investors and analysts will likely keep a close eye on how ServisFirst Bancshares navigates this challenge in the coming quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.