First Internet Bancorp price target raised to $40.50 from $30 at Piper Sandler

Piper Sandler analyst Nathan Race raised the firm’s price target on First Internet Bancorp to $40.50 from $30 and keeps a Neutral rating on the shares. The firm notes results in Q2 were solid, with 15% PPNR upside driven by stronger SBA revenue. Piper is also encouraged that credit metrics were stable. While shares discounted P/TBV valuation is attractive for long-term investors and particularly given management’s various ongoing profitability improvement initiatives, the firm stays on the sidelines as it believes catalysts for a more peer-like valuation are limited and even with net interest income/net interest margin benefits from eventual Fed rate cuts.