Southern First Bancshares assumed with an Overweight at Piper Sandler

Piper Sandler assumed coverage of Southern First Bancshares (SFST) with an Overweight rating and $43 price target Southern First has had “significant struggles” over the past two years as the bank was structured to thrive in a zero rate environment, the analyst tells investors in a research note. Piper believes that “now that the pain has been endured,” the company is on a path to an improved balance sheet construction, while also benefiting from fixed rate loan re-pricings and a liability-sensitive balance sheet as rates eventually decline.