First Merchants price target raised to $55 from $52 at Piper Sandler

Piper Sandler raised the firm’s price target on First Merchants (FRME) to $55 from $52 and keeps an Overweight rating on the shares. The firm reiterates First Merchants as its top pick for this year given its strong operating leverage outlook and overly discounted current valuation. Piper anticipates multiple expansion above peers with strong year-over-year increases in PPNR via at least mid-single digit loan growth and AEA mix improvement that is expected to drive additional net interest margin expansion.