Mercantile Bank price target raised to $57 from $55.50 at Piper Sandler

Piper Sandler raised the firm’s price target on Mercantile Bank (MBWM) to $57 from $55.50 and keeps a Neutral rating on the shares. While results in Q4 were mixed with a 4% pre-provision net revenue shortfall on greater net interest margin compression and continued elevated payoffs, the firm believes Mercantile Bank’s superior profitability outlook remains intact following the close of its Eastern Michigan Financial acquisition on December 31. The addition of Eastern Michigan Financial’s enviable low-cost deposit franchise and excess liquidity should support net interest margin expansion this year and continued strong profitability metrics, Piper adds.