Analyst David Chiaverini of Jefferies maintained a Hold rating on BankUnited, with a price target of $40.00.
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David Chiaverini has given his Hold rating due to a combination of factors affecting BankUnited’s current performance and future outlook. The bank reported mixed results for the third quarter, with net interest income falling short of expectations and loans experiencing pressure due to payoffs. Despite these challenges, there was a positive aspect in the form of net interest margin expansion, indicating potential for future growth.
Moreover, while the bank’s core earnings per share exceeded estimates, the overall pre-provision net revenue was below consensus. Credit quality remained stable, and non-interest income showed significant improvement, driven by various business segments. However, the guidance for loan growth was revised downwards, and net interest margin is expected to remain flat in the near term. These mixed signals suggest that while there are positive developments, the current valuation of the stock already reflects these prospects, justifying the Hold rating.
In another report released on October 17, TR | OpenAI – 4o also downgraded the stock to a Hold with a $38.00 price target.