Financial services company Keefe, Bruyette & Woods adjusted its outlook on HomeTrust Bancshares (NASDAQ: HTBI), increasing the price target to $38.00, up from the previous $32.00. The firm retained its Outperform rating on the bank's shares.
The revision follows HomeTrust Bancshares' recent financial performance, which included a strong net interest margin (NIM) and net interest income (NII), surpassing expectations. However, these positives were balanced by a higher provision for credit losses. The company's calculated NIM saw a 5 basis point rise to 4.11%, and loan growth was reported at 6% on a linked quarter annualized (LQA) basis.
HomeTrust Bancshares has indicated that the NIM was positively influenced by certain one-time items and is likely to decrease in the second half of 2024, noted an analyst by Keefe.
Nonperforming assets (NPAs) experienced a slight increase to 0.68% from 0.55%, and net charge-offs (NCOs) were reported at 0.27%. Despite these changes, the credit trends were described as largely stable.
The financial institution's future earnings estimates have seen minor adjustments, with projections for 2024 and 2025 now set at $3.03 and $2.83, respectively.
HomeTrust recently reported a significant leadership change with Charles "Chuck" Sivley being appointed as Chief Technology Officer (CTO), succeeding Marty T. Caywood, the outgoing Chief Information Officer, who left the company after a 29-year tenure. Sivley, who brings with him three decades of experience in the technology sector, will be responsible for guiding the bank's technological direction and strategy.
InvestingPro Insights
Keefe, Bruyette & Woods' recent price target increase for HomeTrust Bancshares aligns with the company's strong financial performance and optimistic market indicators. According to real-time data from InvestingPro, HomeTrust Bancshares boasts a market capitalization of $600.18M and is trading at an attractive P/E ratio of 9.55, indicating potential value for investors relative to its near-term earnings growth. Additionally, the company's revenue growth over the last twelve months as of Q2 2024 stands at a solid 23.19%, showcasing its ability to expand its financial base.
InvestingPro Tips highlight the company's commendable track record of raising its dividend for 6 consecutive years and the positive sentiment from analysts, with 3 revising their earnings upwards for the upcoming period. These factors, combined with the company's strong return over the last month of 15.98% and over the last three months of 35.69%, suggest a robust short-term performance. Moreover, analysts predict profitability for this year, a sentiment supported by the company's profitable performance over the last twelve months.
For investors seeking a deeper analysis, InvestingPro offers additional tips on HomeTrust Bancshares, which can be accessed at https://www.investing.com/pro/HTBI. To enhance your investing strategy, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With this tool, investors can gain access to a total of 9 InvestingPro Tips, providing a comprehensive outlook on the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.