SY Bancorp stock target raised to $80 at Stephens

On Thursday, Stephens analysts adjusted the price target for SY Bancorp (NASDAQ:SYBT), increasing it to $80.00 from the previous $78.00, while keeping the rating at Equal Weight. The adjustment came after SY Bancorp reported financial results that surpassed expectations in both earnings per share (EPS) and pre-provision net revenue (PPNR) for the first quarter of 2025. The stock has shown remarkable momentum, gaining nearly 12% in the past week, according to InvestingPro data. The improved figures were partly attributed to interest recoveries amounting to $0.6 million, which positively impacted the net interest margin (NIM) by three basis points due to a non-accrual payoff.

The company’s performance in the last quarter showcased an annualized growth in loans and deposits by 8% and 7%, respectively. SY Bancorp’s strategic investment in wealth management is anticipated to contribute positively to its future financial performance. Additionally, the company’s expansion efforts were highlighted by the opening of a new branch in the Indian market. With a market capitalization of $2.2 billion and revenue growth of 9% over the last twelve months, the bank continues to demonstrate solid expansion momentum.

The quarter also saw a significant reduction in nonperforming assets, which dropped by 27% from the previous quarter, ending at a low 0.18% of total assets. This decline was partly due to the non-accrual loan that was paid off, resulting in net loan recoveries for the bank.

Highlighting the bank’s robust financials, the analyst pointed out SY Bancorp’s return on assets (ROA), which stood at 1.52% in the first quarter of 2025. Despite its premium valuation at 2.9 times tangible book value (TBV), the analyst suggested that the bank’s strong results could pave the way for merger and acquisition opportunities once the markets stabilize. InvestingPro analysis indicates the stock is currently trading slightly above its Fair Value, with a P/E ratio of 17.2x. The bank has maintained dividend payments for 37 consecutive years, demonstrating remarkable financial stability.

In light of these developments, Stephens analysts have revised their 2026 EPS estimate for SY Bancorp to $4.55, up from the previous $4.50. The new price target of $80 reflects the company’s consistent performance and potential for growth in the banking sector. The Equal Weight rating indicates that the analysts view the stock as fairly valued at the current price level. InvestingPro subscribers have access to 8 additional key insights about SYBT, including detailed valuation metrics and growth indicators that could help inform investment decisions.

In other recent news, Raymond (NSE:RYMD) James has maintained its Market Perform rating on SY Bancorp shares. This decision follows discussions with SY Bancorp’s President Philip Poindexter and CFO Clay Stinnett, where the company highlighted its focus on organic growth opportunities and strategic plans in the mergers and acquisitions (M&A) space. As SY Bancorp nears the $10 billion asset mark, a milestone that typically brings additional regulatory scrutiny, the bank is concentrating on balancing deposit and loan growth to manage its net interest margin effectively.

Raymond James analyst David Long expressed confidence in SY Bancorp’s business model, noting the bank’s consistent ability to deliver strong profitability and credit metrics. Despite this, Long believes that the bank’s current stock valuation accurately reflects its premium status in the market. The reaffirmation of the Market Perform rating suggests that Raymond James does not anticipate SY Bancorp’s stock to significantly outperform or underperform the broader market in the near term. Investors are likely to keep a close eye on SY Bancorp’s strategic decisions as it approaches the $10 billion asset threshold, a development that could impact its market performance.

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