Piper Sandler Assumes Community Financial System (CBU) at Neutral

Piper Sandler analyst Manuel Navas assumes coverage on Community Financial System (NYSE: CBU) with a Neutral rating and a price target of $62.00.

The analyst comments: "We wait for a better entry point as there is core bank momentum here from better loan growth (MSD-HSDs growth in last 3 years) and an unlocked B/S (~$1B securities runoff through ’27E) that should accelerate EPS growth (+19.0% Y/Y in ’26E and +15.5% in ’27E). We believe MSDs loan growth continues with further NIM upside as ~$1B of securities at a low 1.69% yield mature by ’27E. The securities CFs (w/ another
$1.1B in ’28-’29) can fund higher yielding loan growth, securities reinvestment, and/ or pay off higher cost borrowings. A large securities book with minimal CFs over the last several years (25.8% of assets) has weighed on NIM expansion for a bank with a low 76.5% L/D ratio."

For an analyst ratings summary and ratings history on Community Financial System click here. For more ratings news on Community Financial System click here.

Shares of Community Financial System closed at $57.72 yesterday.

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