On Thursday, Coastal Financial Corp (NASDAQ: CCB) shares received an updated price target from Keefe, Bruyette & Woods, signaling confidence in the bank's growth prospects. The firm raised its price target on the bank's shares to $96.00 from $92.00, while retaining an Outperform rating.
The adjustment follows a positive assessment of Coastal Financial's recent capital raise, which analysts believe equips the bank with the necessary resources to expedite its earnings growth. With a market capitalization of $1.07 billion and projected revenue growth of 43% for FY2024, this financial boost is expected to advance growth from the bank's robust partner pipeline and aid in achieving a dominant position within the Banking-as-a-Service (BaaS) sector.
Analysts at Keefe, Bruyette & Woods have conducted an in-depth analysis of Coastal Financial's unique business model and potential earnings power. Their findings have reinforced the bank's status as a leading investment choice in the digital banking arena. The bank's low credit risk, benefit from lower interest rates, and an improving return profile were highlighted as key attributes.
The bank's earnings growth is particularly notable, with projections of over 170% EPS growth from 2024 to 2026. Additionally, Coastal Financial's solid regulatory positioning and its trading at a discounted valuation compared to its potential have been emphasized.
The market's reaction to these developments and the future performance of Coastal Financial Corp's stock will be observed with interest as investors consider the bank's strategic positioning and growth trajectory in the digital banking sector.
In other recent news, Coastal Financial Corporation, a financial institution with a market cap of $1.02 billion, has publicized the initiation of an underwritten public offering of its common stock.
The bank holding company also plans to provide underwriters a 30-day option to purchase up to an additional 15% of shares at the public offering price, less any underwriting discounts and commissions. The proceeds from the sale are intended for general corporate purposes, which may include investment opportunities and supporting the bank's growth initiatives.
Keefe, Bruyette & Woods, a Stifel company, is leading the offering as the bookrunning manager, with Hovde Group, LLC as a joint bookrunning manager. Raymond (NS:RYMD) James & Associates, Inc. and Stephens Inc. are acting as co-managers for the offering.
Coastal Financial has filed a preliminary prospectus supplement with the U.S. Securities and Exchange Commission (SEC) in relation to the offering, and a final prospectus supplement will also be filed with the SEC.
The bank, with $4.07 billion in assets, operates 14 branches across Snohomish, Island, and King Counties and offers digital financial services. According to InvestingPro analysis, the company maintains a strong financial health score of 3.32, with revenue growing at 8.86% over the last twelve months. These are the recent developments with Coastal Financial.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.