On Thursday, DA Davidson adjusted its outlook on National Bank Holdings (NYSE:) stock, reducing the price target from $54.00 to $51.00, while reaffirming a Buy rating on the shares. Currently trading at $42.24, the $1.6 billion market cap bank maintains a P/E ratio of 13.05. According to InvestingPro data, three analysts have recently revised their earnings upwards for the upcoming period. The modification follows the company’s recent earnings call, which prompted analysts to revise their earnings per share (EPS) forecast due to anticipated increases in operating costs.
The firm’s analysis indicated that the net interest income (NII) outlook for National Bank Holdings remains relatively stable. A higher net interest margin (NIM) run rate is expected to balance out a marginally lower loan growth projection for the year 2025. The bank has demonstrated strong shareholder commitment, having maintained dividend payments for 13 consecutive years with a current yield of 2.75%. InvestingPro analysis reveals the company maintains a GOOD overall financial health score, suggesting resilient fundamentals despite market challenges.
DA Davidson anticipates positive developments from National Bank Holdings’ 2UniFi platform later in the year. Current projections have only accounted for the costs associated with the platform, without considering the potential benefits it may bring. The firm’s statement underscored their continued endorsement of a Buy rating for the bank’s stock, with a revised price target set at $51.
In their commentary, DA Davidson highlighted the factors influencing their decision: “Following the company’s conference call, we are lowering our EPS forecast on increased operating costs. The NII picture was largely unchanged as a higher NIM run rate offset a slightly lower loan growth projection in 2025. We expect to hear positive 2UniFi updates later this year as current estimates only include the costs of the platform and none of the benefits. We reiterate our BUY rating with a $51 PT.”
Investors and market watchers will be keeping an eye on National Bank Holdings as the year progresses, particularly for updates on the 2UniFi platform and its impact on the company’s financial performance. For deeper insights into NBHC’s valuation and growth prospects, InvestingPro subscribers can access comprehensive research reports with detailed financial analysis and expert insights, part of the platform’s coverage of over 1,400 US equities.
In other recent news, National Bank Holdings Corporation (NBHC) outperformed analysts’ expectations in its Q4 2024 earnings, posting an adjusted earnings per share (EPS) of $0.86 against a forecast of $0.77. However, the company’s revenue of $101.25 million missed the projected $107.09 million. The bank’s net income for the quarter was $28.2 million, translating to $0.73 per diluted share, with an adjusted net income of $33.2 million or $0.86 per diluted share. For the full year, NBHC reported a net income of $118.8 million, or $3.08 per diluted share, with an adjusted figure of $123.9 million, or $3.22 per diluted share.
In other developments, NBHC’s 2Unifi banking marketplace is set to generate revenue in the second half of 2025, and the company projects loan growth in the mid-single digits for the same year. The bank also expects to maintain a return on tangible common equity at 14.4% and achieve an 11% growth in tangible book value throughout 2024.
These recent developments come from analysts’ notes and earnings call transcripts, providing valuable insights into the bank’s performance and future expectations. It’s important to note that these are factual statements and not a comprehensive view of the company.
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