Piper downgrades Cambridge Bancorp with challenges ‘on the horizon’

Piper Sandler downgraded Cambridge Bancorp to Neutral from Overweight with an unchanged price target of $65 following this morning’s Q2 results. The stock no longer looks inexpensive trading at 102% of tangible book value 12-times estimated 2023 earnings, the analyst tells investors in a research note. In addition, the firm sees continued net interest margin challenges “on the horizon.” Now is an opportune time to temper enthusiasm for the stock a bit, says Piper.