United Community Banks: Organic Loan Growth And M&A Catalysts Counterbalance Q2 Miss, Says Analyst
Portfolio Pulse from Nabaparna Bhattacharya
United Community Banks, Inc. (UCBI) missed Q2 earnings estimates, reporting adjusted earnings of $0.55 against the consensus of $0.61. However, Stephens analyst Russell Gunther reiterated an Overweight rating and raised the price target to $33 from $31, citing better-than-expected non-interest expense run-rate, mid-single-digit organic loan growth, and future M&A integration as positive factors. Gunther lowered FY23 and FY24 Op. EPS estimates due to the Q2 miss and a lower NII outlook.

July 20, 2023 | 5:50 pm
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NEUTRAL IMPACT
UCBI missed Q2 earnings estimates but has positive factors such as organic loan growth and future M&A integration. The price target was raised to $33 from $31.
UCBI's Q2 earnings miss is a negative factor that could impact the stock price. However, the company's organic loan growth and future M&A integration are positive factors that could counterbalance the earnings miss. The analyst's reiteration of an Overweight rating and increase in price target also indicate confidence in the company's future performance.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100