Stephens Starts Southern Missouri Bancorp (SMBC) at Overweight

Stephens analyst Matt Olney initiates coverage on Southern Missouri Bancorp (NASDAQ: SMBC) with a Overweight rating and a price target of $60.00.

The analyst comments "Profitability remains a top priority at SMBC, demonstrated by relatively strong levels of ROAA, efficiency and TBVPS growth over a 10-year time frame. SMBC also prioritizes credit quality as its NCOs have averaged just 4 bps over the last 10 years. Since its 1994 IPO, SMBC's stock price has a 10% CAGR. During this same time, the BANK index has a 6% CAGR. SMBC’s relative outperformance has almost entirely been since 2011. In the near-term, we believe deposit pricing headwinds are easing, while earning assets continue to reprice higher, resulting in NIM expansion. The balance sheet is likely to benefit from lower interest rates which could accelerate the NIM performance. The Bank remains well positioned for Bank M&A due to its fragmented markets and active acquisition history. We are initiating coverage of SMBC with an Overweight rating and a $60 price target."

For an analyst ratings summary and ratings history on Southern Missouri Bancorp click here. For more ratings news on Southern Missouri Bancorp click here.

Shares of Southern Missouri Bancorp closed at $49.67 yesterday.

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