UMB Financial price target lowered to $135 from $137 at Piper Sandler

Piper Sandler lowered its price target on UMB Financial (NASDAQ:UMBF) to $135 from $137 while maintaining an Overweight rating on the stock. The research firm cited implications from UMB Financial’s recent preferred raise as the reason for the slight adjustment to its target. According to InvestingPro data, UMB Financial, with its current market capitalization of $7.83 billion, has demonstrated remarkable dividend consistency, having raised its dividend for 32 consecutive years.

The firm adjusted its 2025 and 2026 operating earnings per share estimates to $10.16 and $11.25, respectively, down from previous estimates of $10.25 and $11.40. Despite the reduced price target, Piper Sandler expressed confidence in UMB Financial’s growth prospects following its recent HTLF acquisition. InvestingPro analysis indicates the stock is currently trading near its Fair Value, with a "FAIR" overall financial health score.

UMB Financial stock has underperformed year-to-date, declining 7.94% compared to the KRE regional banking index’s 4% drop. While near-term performance has been challenging, the stock has delivered an impressive 29.56% return over the past year. The company currently trades at 10.1 times Piper Sandler’s 2025 earnings estimates and 9.2 times its 2026 projections, with a current P/E ratio of 13.81x.

Piper Sandler highlighted UMB Financial’s "superior and more macro resilient organic balance sheet growth prospects" as a key factor in maintaining its Overweight rating. The firm also pointed to potential upside from greater cost synergies emerging from the HTLF acquisition.

The research firm noted UMB Financial has historically traded at a 2-3 times forward price-to-earnings premium compared to peers, suggesting the current valuation represents "an attractive entry" point for investors.

In other recent news, UMB Financial has announced a public offering of depositary shares representing its Series B Preferred Stock, with plans to raise funds for general corporate purposes, including redeeming its Series A Preferred Stock and repurchasing subordinated notes. Keefe, Bruyette & Woods analysts have reaffirmed an Outperform rating on UMB Financial, noting a slight 1% decrease in earnings per share due to the new Series B preferred offering. However, they expect the company to benefit from a stronger capital position. Raymond (NSE:RYMD) James also maintains a Strong Buy rating, with a price target of $135, highlighting the company’s strategic financial moves to manage capital costs. The proceeds from the Series B offering are intended to redeem securities set to reprice at higher rates soon. UMB Financial has also expanded its Corporate Trust and Agency Services in California by opening a new office in Costa Mesa and hiring professionals from Wilmington Trust. This expansion follows UMB’s acquisition of HTLF Bank and its division, Premier Valley Bank, earlier this year. The company aims to enhance its service offerings in key markets through strategic hires and acquisitions.

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