BankUnited price target lowered to $39 from $42 at Citi

Citi analyst Benjamin Gerlinger lowered the firm’s price target on BankUnited to $39 from $42 and keeps a Neutral rating on the shares. The company’s mid-quarter update indicated it will likely see continued net interest margin expansion over the next 12 months, the analyst tells investors in a research note. However, the firm says it will likely be a little more volatile as seasonality trends impact the recent success of non-interest-bearing deposit growth. It believes BankUnited’s capital is likely to be deployed into loan growth over the next few quarters rather than share repurchases. Citi remains on the sidelines given second half of 2024 deposit seasonality headwinds and limited near-term loan growth.