Raymond James Starts Alerus Financial Corp. (ALRS) at Outperform

Raymond James analyst Ken Kohut initiates coverage on Alerus Financial Corp. (NASDAQ: ALRS) with a Outperform rating and a price target of $34.00.

The analyst comments "Alerus Financial Corporation (ALRS): Outperform, $34 price target. We believe Alerus is transitioning from a post-rate hike recovery story into a differentiated compounder supported by an attractive and unique business model. Its commercial banking, wealth management, and retirement businesses are each well positioned for long-term organic growth while offering meaningful synergies across the franchise, a valuable characteristic for any financial institution. Furthermore, the wealth management and retirement businesses are capital-light, zero credit-risk businesses that generate durable fee income, diversifying revenue away from interest rate risk while lowering the enterprise's overall risk profile. Within the bank, we view Alerus as a disciplined underwriter with a long history of contained credit losses. Combined with above-average profitability, excess capital, and multiple avenues for organic and inorganic growth, we believe continued execution should support valuation multiples more consistent with the quality and differentiation of the franchise."

For an analyst ratings summary and ratings history on Alerus Financial Corp. click here. For more ratings news on Alerus Financial Corp. click here.

Shares of Alerus Financial Corp. closed at $30.34 yesterday.

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