On Wednesday, Piper Sandler, a financial services firm, increased its stock price target for Southern Missouri Bancorp (NASDAQ:SMBC) to $66.00, up from the previous $62.00. The firm maintained its Overweight rating on the stock. This adjustment comes in the wake of a recent earnings report and market developments that have influenced the bank's financial outlook.
The analyst at Piper Sandler made slight revisions to the margin forecast but also anticipated an uptick in fee income, reduced expenses, and lowered provision assumptions for future potential losses. These changes have led to an increase in the forecast for the fiscal year 2025 earnings per share (EPS) by $0.20, bringing the estimate to $4.90. However, the EPS estimate for fiscal year 2026 remains unchanged at $5.45.
The rationale behind the price target increase is partly attributed to the recent rise in peer multiples, which are metrics used to gauge a company's value compared to others in the same industry. The new price target of $66.00 is based on a multiple of 13.5 times the firm's 2025 EPS estimate, an increase from the previous multiple of 13.2.
Piper Sandler's revised outlook for Southern Missouri Bancorp is reflective of the broader financial landscape and the company's operational adjustments. The Overweight rating suggests that the analyst believes SMBC's stock will outperform the average return of the stocks analyzed by the firm.
In other recent news, Southern Missouri Bancorp reported significant developments in its financial performance. The company's full fiscal year earnings rose to $4.42 per share, up from $3.85 in the previous year. Additionally, the company declared a 9.5% increase in their quarterly dividend, marking its 122nd consecutive payout.
The firm Stephens has also revised its price target for Southern Missouri Bancorp to $72, maintaining an Overweight rating on the stock. This adjustment was made following the company's third-quarter 2024 results, which demonstrated notable improvements in net interest income and a reduction in operating expenses.
Furthermore, 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 significant recent developments. These updates are based on the company's recent earnings call, filings, and analyst notes from Stephens.
The firm anticipates a 15% growth in pre-provision net revenue for the calendar year 2025, underpinned by the expectation of positive operating leverage and anticipated net interest margin expansion. These recent developments provide valuable insights for investors assessing Southern Missouri Bancorp's performance.
InvestingPro Insights
The recent analysis by Piper Sandler aligns with several key metrics and trends observed in Southern Missouri Bancorp's (NASDAQ:SMBC) financial performance. According to InvestingPro data, SMBC's revenue growth stands at 18.28% for the last twelve months as of Q4 2024, indicating a robust expansion that supports the analyst's optimistic outlook. The company's P/E ratio of 13.76 and adjusted P/E ratio of 13.47 for the last twelve months suggest that the stock is trading at a reasonable valuation relative to its earnings, which is consistent with Piper Sandler's multiple-based price target.
InvestingPro Tips highlight that SMBC has raised its dividend for 13 consecutive years and has maintained dividend payments for 30 consecutive years, demonstrating a strong commitment to shareholder returns. This track record of dividend growth, coupled with a current dividend yield of 1.54%, may be attractive to income-focused investors. Additionally, the company's trading near its 52-week high and its high return over the last year (with a 50.3% price total return) reflect the market's positive sentiment, which aligns with Piper Sandler's Overweight rating.
For investors seeking a deeper understanding of SMBC's potential, InvestingPro offers 7 additional tips that could provide valuable insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.