UPDATE: Piper Sandler Upgrades Home Bancorp, Inc. (HBCP) to Overweight

(Updated - February 3, 2021 5:40 AM EST)

Piper Sandler analyst Stephen Scouten upgraded Home Bancorp, Inc. (NASDAQ: HBCP) from Neutral to Overweight with a price target of $40.00 (from $29.00).

The analyst comments "We are increasing our 2021/22E's to $3.71/$3.61 (from $3.33/$3.03) after better 4Q20 results and more encouraging trends regarding forward growth. A portion of the increase is coming from lower projected credit costs, but we are also increasing our PTPP ROA expectations - to ~1.60% in 2022. Growth in HBCP's markets remains somewhat tepid, but the bank has seen stronger production through most of the year and is no longer facing the same headwinds from run-off on past M&A transactions. We are now modeling for ~5% growth in 2021/22 as the bank appears to have turned the corner. Additionally, with the shares trading at ~1x TBVPS today and the LLR at 1.87% of loans ex-PPP, we think the bank is well insulated from any modest spike in NCOs. Our new $40 PT is ~11x our 2022E (up from 10x given the market move) and implies only ~1.25x TBVPS."

For an analyst ratings summary and ratings history on Home Bancorp, Inc. click here. For more ratings news on Home Bancorp, Inc. click here.

Shares of Home Bancorp, Inc. closed at $30.71 yesterday.

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