Stephens starts German American Bancorp at Overweight on margin expansion

As previously reported, Stephens analyst Brandon Rud initiated coverage of German American Bancorp with an Overweight rating and $45 price target The firm notes that the company’s attractive earning asset repricing dynamics, specifically in German American’s loan portfolio, should enable net interest margin expansion amid interest rate cuts, the analyst tells investors in a research note. Stephens further cites the bank’s pending acquisition of Heartland expanding the company’s footprint into Ohio as well as its track record of successful transactions that should give investors confidence in the management’s ability to deliver on earnings accretion.