On Wednesday, Synovus (NYSE:SNV) Financial Corp (NYSE: SNV) saw its stock price target increased by an analyst at DA Davidson from the previous $60.00 to a new target of $65.00. The firm has kept its Buy rating on the stock, signaling continued confidence in the company's performance.
The $7.81 billion market cap financial institution has demonstrated strong momentum, with a remarkable 50.73% return year-to-date. InvestingPro data reveals several positive indicators, including strong returns over both three-month and one-year periods.
The financial institution recently provided a mid-quarter update ahead of its participation in the D.A. Davidson Eastern Bank Summit. The update revealed a quarter-over-quarter decrease in projected loan balances due to high payoff levels.
However, Synovus expects the net interest margin (NIM) to be stable or potentially higher compared to the third quarter. Consequently, the company has adjusted its revenue guidance to range between $365 million and $375 million, as opposed to the prior estimate of $360 million to $375 million.
Notably, InvestingPro analysis shows the company has maintained dividend payments for 51 consecutive years, currently offering a 2.76% yield.
In addition to the current quarter's projections, Synovus also offered an initial outlook for the year 2025. The bank anticipates loan and core deposit growth to be between 3% and 6%, with revenue growth expected to fall in the range of 3% to 7%. This forward-looking perspective appears to align with DA Davidson's analysis, which supports an above-consensus estimate of $4.76 for Synovus.
The revision of the price target to $65 reflects the analyst's view that Synovus is on a positive trajectory, despite the moderation in loan balance growth. The maintained Buy rating alongside the new price target suggests that the analyst sees potential for the stock to perform well in the future.
According to InvestingPro Fair Value analysis, the stock appears slightly overvalued at current levels, though this hasn't dampened analyst enthusiasm. For deeper insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which includes detailed analysis of Synovus's financial health and growth prospects.
In other recent news, Synovus Financial Corp has been the subject of several key developments. Deutsche Bank (ETR:DBKGn) has upgraded Synovus stock to Buy, citing a favorable growth outlook. The bank predicts that Synovus will experience earnings growth surpassing that of its peers for the fiscal years 2025 and 2026, based on the company's strategic initiatives and the anticipated favorable economic conditions.
Synovus reported strong Q3 earnings, with GAAP earnings per share of $1.18 and a 6% sequential rise in adjusted diluted EPS to $1.23, attributed to stronger net interest income and lower credit loss provisions. The company also completed approximately $100 million in share repurchases during the quarter.
Synovus has declared dividends for both common and preferred stockholders, with a dividend of $0.38 per share on the company's common stock. Anne Fortner has been promoted to Executive Vice President, Chief Credit Officer, succeeding Bob Derrick upon his retirement.
The company announced a $500 million offering of senior notes due in 2030, with the proceeds expected to be allocated to general corporate activities. The offering is led by BofA Securities, Inc. and Morgan Stanley (NYSE:MS) & Co. LLC as active joint book-running managers.
For Q4, Synovus provided an adjusted revenue guidance of $560 million to $575 million, anticipating a stable net interest margin. The company's strategic focus is on organic growth rather than acquisitions in the current market environment.
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