UMB Financial (UMBF) PT Raised to $120 at Piper Sandler

Piper Sandler analyst Nathan Rice raised the price target on UMB Financial (NASDAQ: UMBF) to $120.00 (from $102.00) while maintaining a Overweight rating.

The analyst commented, "We reiterate UMBF at OW following solid 2Q upside and with additional outperformance expected in 2H24 via likely NIM upside (vs. stable guidance) and superior operating leverage. We also expect credit quality to remain a non-issue for UMBF. For 2025, we believe UMBF's pending and progressing-as-planned HTLF acquisition will provide additional catalysts. More specifically, we expect a relatively more stable through-cycle NIM with HTLF's high-quality, low-cost deposit base and a likely conservative 27.5% cost saves target that should result in UMBF generating consistently above average profitability. Ongoing operating leverage across UMBF's higher multiple/ less capital intensive fee businesses will also likely contribute to future P/E expansion. We raise our 2024E/2025E operating EPS to $8.72/$9.20 (+6%/3%) with improved NII and operating expense expectations. Our PT moves to $120 (+$18) based on 13.0x our 2025E EPS (+1.5x with higher peer multiples), consistent with UMBF's historical 2-3x premium over peers (10.4x)."

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