Customers Bancorp (CUBI) PT Lowered to $55 at Piper Sandler

Piper Sandler analyst Frank Schiraldi lowered the price target on Customers Bancorp (NYSE: CUBI) to $55.00 (from $61.00) while maintaining a Neutral rating.

The analyst commented, "CUBI reported $1.31 in 3Q24 EPS. After adjusting for several non core items including severance, we peg core at $1.34. This compares to our estimate of $1.48 and consensus of $1.43. The quarter included significant noise but the most significant deltas a $0.35 miss on NII partially offset by a $0.17 beat on provisioning. While the bank largely delivered on growth, NIM came in 23 bps lower lq to 3.06%. On the call mgmt suggested there was still a path to 30% EPS growth in 2025 (off a depressed base); our modeling implies that would be aggressive and we are reducing expectations accordingly. The new starting point in NIM, along with higher expense, is the primary driver of our reduction. Capital levels remained above target and credit remained benign and therefore we expect the more muted stock reaction reflects some downside protection inherent in the sub-TBVPS valuation."

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