UMB Financial stock rating reiterated at Outperform by KBW on solid earnings

Investing.com - Keefe, Bruyette & Woods has reiterated its Outperform rating and $130.00 price target on UMB Financial (NASDAQ:UMBF) following the bank’s recent earnings report.

The research firm cited a "solid EPS beat" driven by stronger net interest income, including both core and accretion components, as key factors supporting the continued positive outlook for the regional bank. InvestingPro data shows three analysts have recently revised their earnings estimates upward for the upcoming period.

KBW specifically highlighted UMB Financial’s 10% loan growth on an annualized basis, noting this metric addresses concerns that some bearish investors had previously identified as a potential risk area for the company in recent quarters.

The firm described UMB Financial as trading at less than 10 times its 2026 earnings estimates while delivering an 18% return on tangible common equity, which it views as attractive relative to peers.

KBW maintains that UMB Financial remains a "top SMID-cap bank idea" based on its above-peer organic loan growth, building capital ratios, and clean credit profile. The bank has maintained dividend payments for 55 consecutive years, with 32 years of consecutive dividend increases, demonstrating strong financial stability. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis through the Pro Research Report, available on InvestingPro.

In other recent news, UMB Financial Corporation reported second-quarter earnings that exceeded analyst expectations. The company posted adjusted earnings of $2.96 per share, surpassing the analyst consensus of $2.37. Revenue reached $689.2 million, significantly above estimates of $635.9 million, representing a 76.7% increase compared to the previous year. Net interest income saw a substantial rise of 90.5% year-over-year, totaling $467 million. Additionally, noninterest income increased by 53.3% to $222.2 million. These results were driven by strong loan and deposit growth, as well as notable gains from private investments. The company’s performance highlights its robust financial health and effective strategic initiatives.

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