Raymond James analyst Ken Kohut raised the price target on Alerus Financial Corp. (NASDAQ: ALRS) to $37.00 (from $34.00) while maintaining a Outperform rating.

The analyst comments "We reiterate our Outperform rating and raise our target price to $37 following 2Q results, highlighted by a meaningful credit cleanup and stronger core NIM trends with an improved 2026 NIM outlook. While loan growth has been elusive through 1H26, management reiterated its midsingle digit growth outlook given the strength of the pipeline. Although the expense outlook increased to support strategic hiring, the improved NIM outlook more than offsets the higher expenses, leading to a slight increase in our EPS estimates. With solid organic growth prospects, strong profitability, and durable fee income streams, we believe ALRS shares remain undervalued relative to peers."