In a report released today, Frank Schiraldi from Piper Sandler upgraded Northfield Bancorp (NFBK – Research Report) to a Buy, with a price target of $14.00.
Frank Schiraldi has given his Buy rating due to a combination of factors, primarily focusing on Northfield Bancorp’s asset repricing potential and its valuation. Schiraldi highlights that the company is trading at less than 70% of its tangible book value per share, which he considers a good value. He anticipates significant earnings growth driven by asset repricing, projecting over 30% annual EPS growth for the next two years, despite a contraction in the loan book.
Additionally, Schiraldi points out that Northfield Bancorp’s strong leverage ratio of over 12% provides a substantial margin of safety. He has increased his estimates for 2025 and 2026 to reflect the ongoing repricing story, with a new 12-month price target of $14, which assumes the stock will reach approximately 85% of its tangible book value per share. This target reflects a modest premium to peers but is justified by the expected growth and the company’s financial stability.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of NFBK in relation to earlier this year.