On Monday, Keefe, Bruyette & Woods revised its outlook for: carney financial Corp. (NASDAQ:), lowers price target to $6.00 from $6.75. The company maintained a Market Perform rating on the stock.
This adjustment follows Kearney Financial's recent earnings report, which showed modest earnings per share (EPS) gains due to lower provisions and slightly improved core preprovision net income (PPNR). It is. However, the company expects its net interest margin (NIM) to continue to be compressed in the coming quarters due to a resurgence in certificate of deposit (CD) costs.
The revised NIM outlook for fiscal 2025 resulted in a downward revision to the company's EPS forecast for the year. Keefe, Bruyette & Woods expects Kearney Financial's profitability to remain weak until it achieves sustainable margin improvement in the second half of fiscal 2025. The company expects return on tangible common equity (ROTCE) to be 4% in both fiscal years 2024 and 2025.
Analyst comments highlighted expectations that the stock price is likely to remain around its current valuation, which is 0.6 times tangible book value (TBV). Market performance ratings reflect analyst views on a stock's prospects for poor profitability. The new $6.00 price target is based on a valuation of 0.6x future fiscal year 2025 TBV and 16x the company's estimated EPS.
Investment Pro Insights
Recent analysis by InvestingPro takes a deeper dive into Kearney Financial Corporation's financial health and market performance. The company's aggressive share buyback strategy is a strong sign of management's confidence in the intrinsic value of its stock. investment pro tips This highlights the active role of management in share buybacks. Additionally, the company's price/book ratio is currently low at 0.41, suggesting the stock may be undervalued relative to book value, making it an attractive entry point for value investors. there is a possibility.
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Investors looking for income will look at the high dividend yield of 7.69%. This marks Kearney Financial's tenth consecutive year of maintaining its dividend, a testament to its commitment to returning value to shareholders. Despite the expected decline in sales and expected decline in net income this quarter, analysts expect the company to continue to be profitable, reflected in the positive net income for the past 12 months. I am.
It has a market capitalization of $348.2 million, a price-to-earnings ratio (P/E) of 22.72, and an adjusted P/E ratio of 23.88 for the trailing 12 months as of Q3 2024, according to real-time data from InvestingPro. The company's stock price is hovering around its 52-week low, with the price down approximately 25.97% in the past three months, with the potential for a rebound if market conditions favor the company's fundamental value and profitability. It shows that there is.
For more detailed analysis and additional information, please visit investment pro tips, readers can explore InvestingPro's suite of tips. We have 11 more tips for Kearny Financial Corp that can give investors a comprehensive understanding of the company's potential. Consider using a coupon code to access these insights. pro news 24 Get an extra 10% off annual or biennial Pro and Pro+ subscriptions.
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