Home BancShares' EPS Adjustments Reflect Changing Loan and Deposit Landscape: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Stephens analyst Matt Olney reiterated an Overweight rating on Home BancShares, Inc. (HOMB) and raised the price target to $27 from $26. The 2Q23 results were in line with consensus forecasts, driven by solid core fees and lower LLP expenses. However, NII was soft due to loan balance contraction and deposit remix headwinds. The 2023 Op EPS was increased from $1.97 to $1.99, while the 2024 EPS forecast was lowered from $1.80 to $1.78. The company is expected to remain conservative with new originations and forecasts modest loan growth contraction in 2H23.
July 21, 2023 | 7:08 pm
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NEUTRAL IMPACT
Home BancShares' 2Q23 results were in line with consensus, but NII was soft due to loan balance contraction and deposit remix headwinds. The 2023 Op EPS was increased, while the 2024 EPS forecast was lowered.
The news is directly about Home BancShares and its financial performance. The company's 2Q23 results were in line with consensus, but NII was soft due to loan balance contraction and deposit remix headwinds. This could have a neutral impact on the stock as the positive and negative factors balance each other out.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100