Mercantile Bank price target raised to $54 from $52 at Raymond James

Raymond James analyst Daniel Tamayo raised the firm’s price target on Mercantile Bank (MBWM) to $54 from $52 and keeps an Outperform rating on the shares. Forecasts were updated to reflect a smaller balance sheet impact from the Eastern Michigan acquisition, slower loan growth, and greater near-term net interest margin pressure from recent rate cuts, partly offset by lower loss provisions and expense growth, the analyst tells investors in a research note. Despite expected Q4 NIM contraction and loan growth below guidance, strong profitability, solid growth, and credit quality support the view that shares can close their valuation discount to peers.