Piper upgrades Southern First Bancshares to Overweight, raises target to $44

Piper Sandler analyst Casey Orr Whitman upgraded Southern First Bancshares to Overweight from Neutral with a price target of $44, up from $34. With more certainty that the Fed isn’t going to keep raising rates and the possibility for cuts this year, the firm thinks Southern First Bancshares is in a position to rebound in 2024. The shares were down 41% over the last two years, with significant net interest margin pressure given a liability sensitive balance sheet. Management has taken some steps to reduce liability sensitivity in the event of further hikes, but its net interest remains in a good position to rebound should rates stabilize, while rates coming down would add fuel to that fire, Piper adds. Southern First Bancshares is also a bank that the firm feels very comfortable with on credit.