HomeStreet (HMST) PT Raised to $14 at Piper Sandler Following Sale to MCHB

Piper Sandler analyst Matthew T. Clark raised the price target on HomeStreet (NASDAQ: HMST) to $14.00 (from $10.00) while maintaining a Neutral rating.

The analsyt commented: "Outright Sale of HMST to MCHB Should Not Come As a Big Surprise; MCHB (not covered) announced it has entered into a reverse merger to acquire HMST for $300M or ~$15.50 p/s in an all-stock deal that represents 75% of TBV and a 67% market premium. MCHB is the accounting acquiror and HMST will issue shares so MCHB / HMST pro-forma ownership is 92% / 8%. This transaction is not a surprise to us since we believed a sale of HMST was the most likely outcome, but the consideration is a little higher than expected. The transaction is expected to be 23% accretive to HMST's 2026E consensus EPS with 42% cost saves and B/S repositioning. We raise our PT on HMST to $14 (from 80% of MTM TBV), consistent with the purchase price, less a 10% discount for the time between today and close."

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