On Wednesday, HomeTrust Bancshares (NASDAQ:HTBI) received an upgrade in its stock rating by Keefe, Bruyette & Woods (KBW). The firm raised the bank's rating from Market Perform to Outperform, maintaining a price target of $32.00. The decision follows a recent meeting with HomeTrust Bancshares' CEO, President & Vice Chair Hunter Westbrook, and CFO, EVP & Corporate Treasurer Tony VunCannon.
KBW's positive stance on HomeTrust Bancshares is influenced by several factors. The firm has noted the bank's successful shift from its thrift origins to a more commercially focused banking franchise. This transition is part of the bank's broader strategy to increase profitability. Additionally, the bank's presence in the attractive southeast markets and its perceived scarcity value contribute to KBW's outlook.
The financial institution's stock is currently trading at 0.97 times tangible book value (TBV) and 9.1 times its estimated 2024 earnings. According to KBW, this valuation presents a 26% upside potential to the $32.00 price target, which remains unchanged despite the upgrade. The firm's earnings per share (EPS) estimates for HomeTrust Bancshares also remain steady at $2.83 for 2024 and $2.79 for 2025.
The update from KBW underscores a series of strategic changes and improvements at HomeTrust Bancshares. These efforts have been aimed at steering the bank toward higher profitability and enhancing its value in the competitive banking sector.
Investors and market watchers will be keeping a close eye on HomeTrust Bancshares' performance following this upgrade, as the bank continues to navigate its strategic initiatives in the evolving financial landscape.
InvestingPro Insights
Following the recent upgrade by Keefe, Bruyette & Woods, HomeTrust Bancshares (NASDAQ:HTBI) has shown promising metrics that align with the firm's positive outlook. InvestingPro data indicates that the company has a P/E Ratio of 8.73, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at an even lower 8.18. This suggests that the stock is trading at a low price relative to near-term earnings growth, a sentiment echoed by an InvestingPro Tip highlighting the company's low P/E ratio in comparison to its earnings growth.
Additionally, HomeTrust Bancshares has exhibited a strong performance over the last three months, with a 15.29% price total return, which may attract investors looking for robust short-term gains. This is complemented by a consistent dividend policy, as evidenced by the bank raising its dividend for six consecutive years, a fact that long-term investors might find particularly appealing.
InvestingPro Tips also reveal that analysts are optimistic about the bank's future, with three analysts having revised their earnings upwards for the upcoming period and a prediction that the company will be profitable this year. These insights could provide valuable information for investors considering HomeTrust Bancshares' stock, especially in light of its strategic shift towards more commercially focused banking operations.
For those seeking further analysis and additional InvestingPro Tips, more insights are available for HomeTrust Bancshares at https://www.investing.com/pro/HTBI. Moreover, users can take advantage of an extra 10% off a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24. There are 7 additional InvestingPro Tips listed on InvestingPro that could further inform investment decisions.
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