Merchants Bancorp price target lowered to $41 from $42 at Piper Sandler

Piper Sandler analyst Nathan Rice lowered the firm’s price target on Merchants Bancorp (MBIN) to $41 from $42 and keeps an Overweight rating on the shares. The firm notes Merchants Bancorp is more of a credit “show me” story following elevated LLP/NCOs in Q2 tied to previously flagged and mostly fraud impacted loans originated through brokers a few years ago, noting Merchants Bancorp ceased production via brokers in 2022. While Q3 credit costs are likely to remain elevated, particularly vs. Merchants Bancorp’s much lower historical trackrecord, Piper believes asset quality should be less of an overhang starting in Q4 2025.