Street Calls of the Week
Investing.com - Piper Sandler downgraded South Plains Financial Inc. (NASDAQ:SPFI) from Overweight to Neutral on Friday, while also lowering its price target to $41.00 from $44.00. The $619 million market cap bank currently trades at a P/E ratio of 11.8x, with InvestingPro analysis suggesting the stock is slightly undervalued.
The financial services firm cited South Plains’ significant year-to-date outperformance and 15-month stock price rally as key factors behind the downgrade, despite acknowledging the company’s strong quarterly performance. The stock has delivered a 12.2% return over the past six months, while maintaining its impressive track record of raising dividends for seven consecutive years.
South Plains reported core earnings per share of $1.00, which exceeded both Piper Sandler and consensus estimates. The company would have beaten expectations even without a recovery item that boosted results, as earnings would have been $0.97 per share excluding this factor.
The bank’s net interest margin was 4.05%, or 3.99% excluding the recovery item, which still surpassed Piper Sandler’s expectations by 4 basis points. Deposit growth was described as "extremely impressive" at 15.2% on an annualized basis, although end-of-period loan balances contracted by 5.8%.
Piper Sandler’s new $41 price target represents 12 times the firm’s estimated 2026 earnings for South Plains Financial. With three analysts recently revising earnings estimates upward and a consensus recommendation of 1.75 (Buy), investors seeking deeper insights can access comprehensive valuation metrics and additional ProTips through InvestingPro’s detailed research reports.
In other recent news, South Plains Financial Inc. reported its third-quarter 2025 earnings, which exceeded analysts’ expectations. The company achieved an earnings per share (EPS) of $0.96, surpassing the forecasted $0.86. Additionally, South Plains Financial’s revenue reached $54.18 million, slightly above the anticipated $54.07 million. These results indicate a positive earnings surprise for the company. Despite this, the stock experienced a minor decline in aftermarket trading. The company’s performance highlights its ability to exceed market predictions. Investors may take note of these developments as they assess their portfolios. These recent updates provide insights into South Plains Financial’s current financial standing.
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