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On Monday, Piper Sandler analyst Justin Crowley revised the price target for Unity Bancorp (NASDAQ:UNTY) to $50.00, a decrease from the previous $54.00, while reaffirming an Overweight rating on the company’s shares. Trading at a P/E ratio of 9.07, InvestingPro analysis suggests the stock is currently fairly valued. Unity Bancorp reported first-quarter 2025 earnings per share (EPS) of $1.13. After adjusting for securities losses and a one-time compensation expense, the core EPS is calculated at $1.15, which is $0.02 higher than both the analyst’s and the consensus estimates.
Unity Bancorp kicked off 2025 with robust financial results, surpassing revenue expectations by $0.06 due to margin expansion that exceeded forecasts. The bank also saw its strongest quarter of loan growth in more than two years. With revenue growth of 6.6% and an impressive return on equity of 15%, Unity Bancorp’s core profitability showed consistent improvement throughout 2024, a trend that carried into the first quarter of 2025. The bank reported a core return on assets (ROA) of 1.86% for the period, as measured by Piper Sandler.
Crowley’s analysis highlights Unity Bancorp’s strong performance, emphasizing the bank’s superior return profile compared to its peers. The bank is also noted to be well-positioned thanks to its robust capital and liquidity base. Additionally, credit quality remains stable, according to the analyst’s observations.
Piper Sandler’s maintained Overweight rating suggests confidence in Unity Bancorp’s stock, despite the reduced price target. The bank’s financial health and strong start to the year, as evidenced by its first-quarter performance, underpin this positive outlook.
In other recent news, Unity Bancorp reported robust fourth-quarter earnings, with earnings per share (EPS) of $1.13, surpassing analysts’ estimates. After adjustments, the core EPS was $1.14, exceeding both Piper Sandler’s estimate of $1.09 and the consensus of $1.06. This performance led Piper Sandler to increase its price target for Unity Bancorp shares from $53 to $54, maintaining an Overweight rating. The company achieved a net interest margin expansion of 21 basis points to 4.37%, contributing to a net interest income beat against expectations.
Additionally, Keefe, Bruyette & Woods (KBW) raised its price target for Unity Bancorp from $51 to $55, reiterating an Outperform rating. This decision follows the company’s strong earnings, highlighted by a 22 basis points beat on net interest margin. KBW adjusted its pre-provision net revenue estimates upward by 6% for 2025, while slightly lowering EPS projections due to the removal of near-term buybacks. Despite these adjustments, KBW maintains a positive outlook on Unity Bancorp’s profitability and market position.
In corporate governance news, Unity Bancorp announced the resignation of board member Donald E. Souders, Jr. The company has not provided details on a successor or the potential impact of this departure. Investors often closely monitor such changes, as they can signal shifts in corporate strategy or governance.
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