Merchants Bancorp price target raised to $58 from $51 at Piper Sandler

Piper Sandler raised the firm’s price target on Merchants Bancorp (MBIN) to $58 from $51 and keeps an Overweight rating on the shares. The firm views this as a mixed quarter, with NCOs again relatively elevated and as PPNR was 2% light of expectations. Following Piper’s recent discussion with management, the firm gained greater comfort that fraud-related properties have largely been charged-off or appropriately reserved for. As such, Piper still expects that credit costs and problem loan levels will meaningfully inflect lower later this year.