Mercantile Bank price target lowered to $47.50 from $50 at Piper Sandler

Piper Sandler lowered the firm’s price target on Mercantile Bank (MBWM) to $47.50 from $50 and keeps a Neutral rating on the shares. The firm considers this another strong quarter from Mercantile Bank given 2% PPNR upside driven by solid net interest margin expansion and very well-managed operating expenses. Piper continues to believe Mercantile Bank’s more benign credit and superior profitability profiles warrant a moderate premium relative to peers and despite its asset sensitive balance sheet.