KBW: 'Associated Banc-Corp (ASB) Positioned for Positive Operating Leverage and Growth'

Keefe, Bruyette & Woods analyst Christopher Mcgratty reiterated a Market Perform rating and $28.00 price target on Associated Banc-Corp (NYSE: ASB).

The analyst commented: "Positioned for Positive Operating Leverage and Growth; Comments at a competitor conference this afternoon focused on ASB's ambitions to drive continued positive operating leverage in 2H25, while achieving sustainable organic growth following the execution of its strategic plan. In addition, ASB's reiterated FY25 NII guide of 14-15% growth remains achievable (KBWe at 14.8%).

ASB's organic growth initiatives continue to gain momentum, and this trend should continue to drive improved returns and operating leverage in 2H25 and into 2026E. We see 130bps of y/y ROTCE improvement in 2025E (to 12.8%), while for 2026E we model 300bps of positive operating leverage and an ROTCE in the ~12.5-13.0% range. As ASB continues to hit its growth/ profitability/operating leverage milestones, we believe the current valuation gap to peers can narrow (1.3x TBV vs. KRX at 1.6x)."

For an analyst ratings summary and ratings history on Associated Banc-Corp click here. For more ratings news on Associated Banc-Corp click here.

Shares of Associated Banc-Corp closed at $26.18 yesterday.

You May Also Be Interested In

• Active options: NVDA TSLA SPCX MU AAPL INTC CRWV
• SEC files civil complaint against Netcapital and certain individuals
• Ross Stores (ROST) call put ratio 7.4 calls to 1 put with a focus on August 14 weekly 260 and June 280 calls