Nathan Race, an analyst from Piper Sandler, maintained the Hold rating on Enterprise Financial Services. The associated price target is $64.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Nathan Race has given his Hold rating due to a combination of factors including Enterprise Financial Services’ solid profitability and long-term growth prospects. The company, headquartered in Clayton, MO, has a diversified business model with a strong balance sheet and footprint that supports continued organic growth. Despite its above-average net interest margin, anticipated Federal Reserve rate cuts could compress margins, though the company has strategies in place to mitigate this impact.
Furthermore, Enterprise Financial Services has demonstrated an ability to grow its tangible book value, making it an attractive long-term investment. However, the current valuation already reflects a moderate premium relative to peers, which justifies the Hold rating. The analyst suggests that a more favorable entry point could be considered if there is a pullback in the stock’s relative valuation multiples.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EFSC in relation to earlier this year.