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Investing.com - Truist Securities has raised its price target on UMB Financial (NASDAQ:UMBF) to $144.00 from $130.00 while maintaining a Buy rating on the stock. The bank, currently trading at $124.51 with a market capitalization of $9.45 billion, has shown strong momentum recently, trading near its 52-week high of $129.94.
The firm cited double-digit momentum in legacy UMB operations, along with potential positive inflection in Heartland credit and growth issues as key factors behind the increased target. According to InvestingPro data, the company has demonstrated impressive performance with revenue growth of 31.18% and has maintained dividend increases for 32 consecutive years.
Truist noted that UMB historically traded at 14 times earnings but now trades closer to 10 times, suggesting room for multiple expansion toward 12 times earnings.
The firm observed that while the peer average multiple is 11 times earnings, that figure includes many banks with Northeast commercial real estate concerns, serial merger and acquisition ambitions, or other specific issues.
According to Truist, UMB is outperforming an adjusted peer group (which trades at 12 times earnings) on most financial metrics, supporting the higher valuation target.
In other recent news, UMB Financial Corporation reported strong second-quarter earnings, significantly surpassing analyst expectations. The company achieved an earnings per share (EPS) of $2.96, which exceeded the forecast of $2.37 by 24.89%. Additionally, UMB Financial’s revenue reached $689.21 million, surpassing the projected $635.86 million. These results highlight the company’s robust financial performance during the quarter. The earnings announcement has drawn attention from investors, reflecting confidence in the company’s financial health. While the earnings figures are a major focus, there have been no recent updates on mergers or acquisitions involving UMB Financial. Analysts from various firms have not recently issued any upgrades or downgrades for the company. These developments are part of the ongoing financial narrative for UMB Financial.
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