Raymond James Starts Mercantile Bank Corporation (MBWM) at Outperform

Raymond James analyst Nicholas Holowko initiates coverage on Mercantile Bank Corporation (NASDAQ: MBWM) with a Outperform rating and a price target of $65.00.

The analyst comments "We assume coverage of Mercantile Bank at Outperform, as we view Mercantile as a high-quality Michigan banking franchise with an attractive growth profile, healthy profitability, and pristine credit performance. Continued market expansion in Southeast Michigan should contribute to loan growth near-term, which we project in the 5-6% range, while modest NIM expansion adds to our expectation for upper-single-digit PPNR growth. Credit remains a differentiator, with NPLs at just 12 bp and net recoveries in eight of the past ten quarters. At 10.4x our 2027 EPS estimate and 1.6x TBVPS, we believe shares can sustain a peer-like valuation given consistent growth and strong profitability. Our $65 price target assumes shares trade at 11.3x our 2027 EPS estimate and 1.6x our YE26 TBVPS estimate."

For an analyst ratings summary and ratings history on Mercantile Bank Corporation click here. For more ratings news on Mercantile Bank Corporation click here.

Shares of Mercantile Bank Corporation closed at $59.76 yesterday.

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