On Tuesday, Piper Sandler up to date its outlook on Cathay Common Bancorp (NASDAQ:) shares, growing the worth goal to $36.00 from $32.00, whereas sustaining an Obese ranking on the inventory.
The revision follows Cathay Common’s latest monetary efficiency, the place the corporate reported working earnings per share (EPS) of $0.94, aligning with the consensus and barely surpassing Piper Sandler’s estimate of $0.93.
This earnings outcome was influenced by varied elements, together with increased non-interest expense (NIE), which negatively impacted EPS by $0.10. Nonetheless, this was offset by a positive tax price contributing a further $0.05 to EPS, mortgage loss provisions (LLP) including $0.04, and internet curiosity earnings (NII) enhancing EPS by $0.01.
Piper Sandler’s up to date earnings estimates for Cathay Common Bancorp for the years 2024 and 2025 at the moment are set at $3.90 and $4.05 respectively. This adjustment relies on the corporate’s steerage, which anticipates share buybacks within the second half of the 12 months.
The brand new value goal displays a 9.0 instances a number of on the projected 2025 earnings per share, a rise from the earlier 8.5 instances a number of. The agency notes that this valuation is according to a reduction to the financial institution’s friends.
Regardless of anticipating Cathay Common to underperform resulting from decrease pre-provision internet income (PPNR), Piper Sandler believes that the financial institution’s steerage, which incorporates the deliberate share buybacks, ought to present help for the inventory’s efficiency.
This text was generated with the help of AI and reviewed by an editor. For extra info see our T&C.
