JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Wednesday, Stephens, a financial services firm, increased its stock price target for Southern Missouri Bancorp (NASDAQ:SMBC) shares to $72.00, up from the previous $70.00. The firm maintained its Overweight rating on the stock.
This adjustment comes after the company reported its third-quarter 2024 results, which showcased notable improvements in net interest income (NII) trends and a reduction in operating expenses. These factors contributed to earnings that exceeded consensus forecasts for pre-provision net revenue (PPNR) and earnings per share (EPS).
The analysis by Stephens highlighted that Southern Missouri Bancorp's liability-sensitive balance sheet is well-positioned for further net interest margin (NIM) expansion. This outlook is based on the assumption of lower Federal Funds rates. However, the firm also noted that the financial results could see some variability due to seasonal factors in the short term.
Looking forward, Stephens anticipates a 15% growth in PPNR for the calendar year 2025. This projection is underpinned by the expectation of positive operating leverage and the anticipated NIM expansion. The firm's forecast does not take into account any potential benefits from the ongoing performance improvement project, which involves third-party consultants and aims to further enhance the company's efficiency.
The revised price target of $72 is derived from applying a 13x multiple to Stephens' forecasted EPS for the calendar year 2026 and 1.7x the twelve-month trailing book value per share (TBVPs). The Overweight rating suggests that Stephens views the stock as a favorable investment with the potential to outperform the average market return.
In other recent news, Southern Missouri Bancorp has reported an increase in profitability, with full fiscal year earnings of $4.42 per share, up from $3.85 in the previous year. The company has also declared a 9.5% increase in their quarterly dividend, marking its 122nd consecutive payout.
Looking at analyst coverage, Stephens has initiated an Overweight rating on Southern Missouri Bancorp, noting the bank's consistent profitability and potential for net interest margin expansion.
In addition to these financial highlights, Southern Missouri Bancorp has shown robust loan growth and is exploring potential mergers and acquisitions. Despite a decrease in earnings per share for the quarter compared to the same period last year, the company's rise in profitability and strategic growth initiatives are noteworthy recent developments.
These updates are based on the company's recent earnings call and filings, along with analyst notes. While the analysts' views provide some insight, investors should consider these and other factors in their assessment of Southern Missouri Bancorp's performance.
InvestingPro Insights
Recent data from InvestingPro adds depth to Stephens' positive outlook on Southern Missouri Bancorp (NASDAQ:SMBC). The company's P/E ratio of 13.76 and PEG ratio of 0.91 suggest that the stock may be undervalued relative to its earnings growth potential, aligning with Stephens' optimistic price target.
SMBC's revenue growth of 18.28% over the last twelve months and an impressive operating income margin of 43.42% underscore the company's strong financial performance, supporting Stephens' projection of 15% PPNR growth for 2025. Moreover, the stock's 50.3% price return over the past year and its current trading near its 52-week high (96.63%) reflect investor confidence in the company's trajectory.
InvestingPro Tips highlight SMBC's consistent dividend growth, having raised dividends for 13 consecutive years with a current yield of 1.54%. This track record of shareholder returns complements the company's robust financial metrics and may contribute to its attractiveness as an investment.
For investors seeking a more comprehensive analysis, InvestingPro offers 10 additional tips for SMBC, providing a deeper understanding of the company's financial health and market position.
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