Piper Sandler has increased its price target for Stock Yards Bancorp (SYBT, Financial) from $76.50 to $81 while maintaining a Neutral rating on the shares. This adjustment follows the company's Q1 financial results, which surpassed expectations despite a narrower net interest margin expansion than predicted. This slowdown was attributed to aggressive pricing strategies aimed at boosting deposit growth.
The firm highlights Stock Yards Bancorp's favorable long-term investment potential due to its robust organic growth, effective credit management, and expected top-tier profitability metrics. Additionally, the company is positioned with excess capital and premium resources, which are expected to support strategic mergers and acquisitions as it approaches the $10 billion asset mark.
