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Investing.com - DA Davidson has raised its price target on S&T Bancorp Inc. (NASDAQ:STBA) to $39.00 from $38.00 while maintaining a Neutral rating on the stock.
The firm cited S&T Bancorp’s recent quarterly results, which showed net interest margin expansion of 7 basis points quarter-over-quarter to 3.88%, along with solid loan growth of 5% and deposit growth of 1%.
DA Davidson noted that pre-provision net revenue missed expectations due to weaker operating expenses, which offset better net interest income and fees, while the bank showed sustained credit improvement.
The analyst firm raised earnings per share estimates based on an outlook for solid loan growth, elevated net interest margin, the bank staying below $10 billion in assets in 2025, and contained credit costs.
Despite forecasting above-peer returns with a 1.8% pre-provision net revenue return on assets for 2026, DA Davidson considers the stock fully valued at 10.4x 2026 estimated earnings versus 9.7x for KRX peers, leading to the maintained Neutral rating. This valuation assessment aligns with InvestingPro’s Fair Value analysis, which suggests the stock is currently trading near its fair value. Subscribers can access the comprehensive Pro Research Report for deeper insights into S&T Bancorp’s valuation metrics and growth potential.
In other recent news, S&T Bancorp reported its Q2 2025 earnings, surpassing expectations with an earnings per share of $0.83, compared to the forecasted $0.81. The company’s revenue also exceeded projections, reaching $100.07 million against an anticipated $99.18 million. These results highlight the company’s financial performance, despite mixed investor sentiment. Additionally, S&T Bancorp announced an increase in its quarterly dividend by 3.03%, raising it to $0.34 per share from the previous $0.33. This dividend will be payable on August 28, 2025, to shareholders of record as of August 14, 2025. The dividend increase reflects the company’s commitment to returning value to its shareholders. These developments provide investors with key insights into S&T Bancorp’s recent activities.
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