On Friday, Keefe, Bruyette & Woods updated its assessment of Univest Corporation of Pennsylvania (NASDAQ:UVSP), raising the bank's price target to $23.00 from $22.00. The firm maintained a Market Perform rating on the stock.
This adjustment comes in the wake of Univest's first-quarter performance, which surpassed expectations in several key financial metrics and showcased a stable credit performance.
The quarter was particularly notable for a positive shift in the net interest margin (NIM), marking the first expansion in a year. This improvement is seen as a pivotal factor for Univest, potentially leading to an increase in net interest income (NII) as 2024 progresses. The firm's analysts have increased their estimates slightly, citing greater confidence in the NIM trajectory.
Univest's financial health appears robust, with a tangible common equity (TCE) ratio of 8.8%, indicating a strong capital position. Management has indicated plans to continue using any excess capital to repurchase shares, with an estimated $12.6 million earmarked for buybacks for the remainder of 2024.
The firm's analysts have expressed their reassurance in Univest's prospects by reiterating the Market Perform rating. This decision reflects the belief that while Univest is on a positive path, it is currently valued appropriately in the market. The raised price target suggests a modest upside potential based on the recent financial results and management's guidance for the year.
InvestingPro Insights
As Univest Corporation of Pennsylvania (NASDAQ:UVSP) continues to show promising financial results, real-time data from InvestingPro offers additional insights into the company's performance and valuation. With a market capitalization of $624.53M and a P/E ratio that has adjusted to 8.58 in the last twelve months as of Q1 2024, Univest stands out in the market. The company's dividend yield is notably attractive at 4.09%, especially considering it has maintained dividend payments for an impressive 46 consecutive years, signaling a commitment to shareholder returns.
InvestingPro Tips highlight that despite weak gross profit margins, analysts predict Univest will be profitable this year, a sentiment supported by the company being profitable over the last twelve months. Additionally, while net income is expected to drop this year, the company's history of raising its dividend for 3 consecutive years provides a degree of reassurance for income-focused investors.
For those seeking further analysis and tips on Univest, InvestingPro offers additional insights. With a current fair value estimation of $24.82, according to InvestingPro, there's potential for upside compared to the recent price target update by Keefe, Bruyette & Woods. Investors interested in a deeper dive into Univest can unlock more InvestingPro Tips by subscribing to the service, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 5 more InvestingPro Tips available for Univest, providing a richer context for potential investment decisions.
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