2023-03-07 09:47:30 ET
- Piper Sandler on Tuesday upgraded Mercantile Bank ( NASDAQ: MBWM ) to Overweight from Neutral due to the bank's conservative net interest margin guidance.
- "MBWM's NIM outlook is so conservative that we believe either it is likely to outperform its guide, or other banks will face more margin pressure than currently captured in estimates, while MBWM's guide already embeds that more punitive scenario," the research firm noted.
- "Either way, we think MBWM's discounted multiple is set to look even more attractive over the next 12 months," it added.
- Piper Sandler raised its price target on Mercantile ( MBWM ) to $40 from $38, implying 17.3% potential upside to its last close.
- The research firm's stance is in line with bullish sell-side ratings , but contrasts SA Quant's Hold rating .
- Earlier, Mercantile ( MBWM ) stock fell over 6% after earnings and subsequent Raymond James downgrade .
For further details see:
Piper Sandler upgrades Mercantile Bank to Overweight on conservative NIM outlook