Tuesday, Piper Sandler has reiterated its Neutral rating on Associated Banc-Corp (NYSE:NYSE:ASB) with a steady price target of $24.00. The firm's assessment follows Associated Banc-Corp's second-quarter earnings, which revealed a downward adjustment in the financial institution's full-year 2024 earnings guidance.
The revised forecast for net interest income (NII), loans, and deposits suggests a need for improved performance in the second half of 2024 to meet the new expectations.
Associated Banc-Corp's guidance for fiscal year 2024 was modified slightly, with projections for loans and deposits now at the lower end of the previously stated range. The bank's management has indicated that achieving the lower end of the revised NII range will require an uptick in loan growth and a modest quarterly expansion in the net interest margin (NIM) throughout the latter half of 2024.
The updated guidance has set the stage for the upcoming months, as the bank will need to demonstrate stronger trends in the second half of the year. Piper Sandler's analysis suggests that the bank's performance in the upcoming quarters will be crucial in meeting the revised NII targets.
The financial institution's progress will be closely monitored, especially as management is expected to provide a mid-quarter update on the full-year 2024 guidance. The outcome of this period will be significant in determining whether Associated Banc-Corp can adhere to its updated financial objectives amidst the challenges outlined in its second-quarter earnings report.
In other recent news, Associated Banc-Corp reported second-quarter earnings per share (EPS) of $0.74, boosted by a one-time $33 million tax benefit, and an adjusted EPS of $0.52. The company also disclosed a loan growth of $211 million, primarily driven by commercial and prime/super prime auto loans. Piper Sandler, RBC Capital, and Baird have made adjustments to their price targets for Associated Banc-Corp shares, citing various factors such as the company's Q2 performance and financial trends.
Piper Sandler has raised its price target to $24, while both RBC Capital and Baird have adjusted their targets to $25, all maintaining neutral ratings on the stock. The revisions have come in light of the company's recent earnings report and its strategic plan focusing on customer growth, profitability, and digital transformation. Associated Banc-Corp has also hired 10 out of a planned 26 commercial relationship managers to drive future growth.
InvestingPro Insights
As Associated Banc-Corp (NYSE:ASB) navigates through its revised full-year 2024 earnings guidance, InvestingPro provides valuable insights into the company's current financial standing. With a market capitalization of approximately $3.36 billion and a P/E ratio of 19.18, the company reflects a stable investment profile. Notably, the company has maintained dividend payments for an impressive 50 consecutive years, signaling a strong commitment to shareholder returns, which is further underscored by a high dividend yield of 3.85% as of the last data point.
InvestingPro Tips highlight that Associated Banc-Corp has raised its dividend for 12 consecutive years, demonstrating a history of consistent shareholder returns. Additionally, the company is expected to remain profitable this year, with profitability already established over the last twelve months. These factors may provide some reassurance to investors concerned about the bank's ability to meet its revised targets.
For investors seeking more detailed analysis and additional insights, InvestingPro offers a range of tips, including seven analysts who have revised their earnings downwards for the upcoming period, which could be a consideration for those assessing the bank's future performance. In total, there are 7 additional InvestingPro Tips available for Associated Banc-Corp, which can be accessed for a deeper dive into the company's prospects.
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