Meridian Bank price target raised to $17 from $15 at DA Davidson

DA Davidson analyst Manuel Navas raised the firm’s price target on Meridian Bank (MRBK) to $17 from $15 and keeps a Buy rating on the shares after its Q3 earnings beat. The firm expects that Fed rate cuts drive improved net interest income and net interest margin while spurring stronger mortgage banking revenues for this mortgage-heavy model that is trading at a too low multiple of 0.9-times tangible book value, the analyst tells investors in a research note. The firm adds that Meridian’s net interest margin expansion was more-than-expected, while its solid loan and deposit growth keep the above-peer 10% growth outlook intact into FY25.