On Friday, Keefe, Bruyette & Woods adjusted its price target for shares of First Internet Bancorp (NASDAQ:INBK), increasing it to $36 from the previous $34, while keeping a Market Perform rating on the stock. The adjustment comes after the company's shares saw an 8% decline in Thursday's trading session.
The drop was attributed to the stock's strong year-to-date performance and lower liquidity, despite First Internet Bancorp reporting first-quarter results that surpassed expectations and confirming their earnings per share guidance for 2024. Additionally, credit trends remained stable.
The firm noted that their estimates for the company remain largely unchanged. However, they expressed optimism about the ongoing success of First Internet Bancorp's Small Business Administration (SBA) lending activities. Furthermore, they highlighted positive developments in the bank's partnerships with financial technology firms, which are seen as beneficial contributors to the bank's core deposits, interest income, and noninterest income.
The analyst's commentary underscored the reasons behind the decision to raise the price target. They pointed out that the bank's SBA business and fintech partnerships are showing accelerating trends, which are expected to support the bank's financial metrics going forward.
First Internet Bancorp's steady credit trends and the reiteration of their 2024 earnings per share guidance were also factors that contributed to the analyst's positive outlook. The bank's ability to exceed expectations in the first quarter while maintaining a stable financial outlook was seen as a sign of underlying strength.
In summary, Keefe, Bruyette & Woods' updated price target reflects a recognition of First Internet Bancorp's stable credit trends, successful SBA initiatives, and growing fintech collaborations, which are anticipated to continue fostering growth in the bank's core financial areas.
InvestingPro Insights
As Keefe, Bruyette & Woods updates its price target for First Internet Bancorp (NASDAQ:INBK), insights from InvestingPro provide a deeper understanding of the company's financial health and future prospects. First Internet Bancorp's market capitalization currently stands at $272.14M, with a P/E ratio of 16.22, reflecting market confidence in its earnings potential. Notably, the company has seen a significant price increase over the last six months, with a 92.75% total return, indicative of strong investor interest and market performance.
InvestingPro Tips highlight that First Internet Bancorp is expected to grow its net income this year and has maintained a history of dividend payments for 13 consecutive years, which may be appealing to income-focused investors. Analysts predict the company will be profitable this year, as it has been over the last twelve months, further reinforcing the positive sentiment. For readers interested in additional insights, there are 6 more InvestingPro Tips available for First Internet Bancorp that can be accessed at: https://www.investing.com/pro/INBK. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
These metrics and insights should provide investors with a more robust picture of First Internet Bancorp's financial landscape as they assess the company's stock in light of recent price target adjustments and market performance.
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