- Piper Sandler on Wednesday initiated coverage of NewtekOne ( NASDAQ: NEWT ) at Neutral given potential near-term choppiness.
- Shares of NewtekOne ( NEWT ) fell as much as 9.3% .
- "While we believe there is plenty to like in the NewtekOne story, the near-term could be choppy given the uncertain environment for loan growth and small business credit, which we believe could impede NEWT from hitting its targets," said analyst Crispin Love.
- Piper Sandler set a $22 price target on NewtekOne ( NEWT ), implying 10.9% potential upside to its last close. "We believe the slight premium is warranted due to its capital position, profitability, and growth prospects," said Love.
- NewtekOne ( NEWT ) projected 2023 EPS of $1.70-$2.00 and 2024 EPS of $2.80-$3.20, implying 60% growth for 2024. Love called the targets ambitious given the recessionary environment, and slowing loan and deposit growth. "Our 2023 and 2024 EPS estimates are $1.54 and $2.35, below management's targets."
- Piper Sandler's stance is in line with sell-side ratings , but SA Quant rates the stock Buy .
- Earlier, NewtekOne raised $20M through preferred stock sale to Patriot .
For further details see:
Piper Sandler initiates NewtekOne at Neutral on near-term choppiness