Investar Holding To See Lower Net Interest Margin Upside In "Higher For Longer" Environment In FY24: Analyst
Portfolio Pulse from Lekha Gupta
Piper Sandler analyst Graham Dick upgraded Investar Holding Corp (NASDAQ:ISTR) to Overweight from Neutral with a price target of $13.5. The upgrade is due to the analyst's view of valuation 'becoming unreasonably depressed' given the bank's modest earnings outlook. The analyst revised EPS estimates to $1.73 for FY23 and $1.14 for FY24, assuming slightly better near-term net interest margins on lower average borrowings. However, the net interest margin is expected to have less growth in FY24 amid a 'higher for longer' environment.
October 05, 2023 | 7:05 pm
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Investar Holding Corp's stock has been upgraded by Piper Sandler to Overweight from Neutral with a price target of $13.5. The analyst revised EPS estimates to $1.73 for FY23 and $1.14 for FY24, but expects less growth in net interest margin in FY24.
The upgrade by Piper Sandler is based on the analyst's view of the bank's valuation 'becoming unreasonably depressed' given its modest earnings outlook. The revised EPS estimates and the upgrade to Overweight from Neutral are likely to have a positive impact on the stock's price in the short term.
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