On Thursday, Piper Sandler, a financial services firm, adjusted its price target on NB Bancorp Inc (NASDAQ:NBBK), increasing it to $22.00 from the previous $21.00. The firm maintained its Overweight rating on the bank's stock following the company's third-quarter financial results for 2024.
NB Bancorp reported earnings per share (EPS) of $0.21 for the third quarter of 2024. Excluding the effects of securities restructuring and other nonrecurring items, Piper Sandler calculated a core EPS of $0.33, which surpassed their estimate by $0.07. The analyst noted that Piper Sandler is currently the sole provider of estimates for NB Bancorp.
The core financial performance yielded a 1% core return on assets (ROA) and a 5.9% core return on tangible common equity (ROTCE). The analyst pointed out that their core EPS calculation did not remove the impact of a $2.4 million provision release associated with unfunded commitments, which would have added approximately $0.05 to the core EPS.
The report concluded with a positive outlook on NB Bancorp's quarterly performance, indicating expectations for a favorable market response to the company's financial results tomorrow.
InvestingPro Insights
NB Bancorp's recent financial performance aligns with several key metrics and trends highlighted by InvestingPro. The company's market capitalization stands at $800.31 million, reflecting its current position in the banking sector. Notably, NB Bancorp's revenue growth has been robust, with a 23.53% increase in the most recent quarter, supporting Piper Sandler's positive outlook.
InvestingPro Tips indicate that NB Bancorp is trading near its 52-week high, with the stock price currently at 97.25% of its peak. This aligns with the significant price uptick of 28.18% over the last six months, suggesting strong investor confidence. The company's profitability over the last twelve months, as noted by InvestingPro, corroborates the positive core ROA and ROTCE figures mentioned in the analyst report.
However, investors should be aware that NB Bancorp is trading at a high earnings multiple, with a P/E ratio of 51.17. This valuation metric may be important to consider alongside the recent price target increase by Piper Sandler.
For readers seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for NB Bancorp, providing a deeper understanding of the company's financial health and market position.
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