Byline Bancorp Positioned for Growth and Value Creation, According to Piper Sandler Analyst

Piper Sandler's Nathan Race raised their price target on Byline Bancorp (NYSE: BY) by 3.7% from $27 to $28 on 2024/01/30. The analyst maintained their Strong Buy rating on the stock.

Race's decision to increase the price target comes after analyzing Byline Bancorp's recently released fourth quarter and full-year 2023 earnings report. The report revealed that Byline Bancorp exceeded expectations in several key areas.

In terms of the fourth quarter results, Byline Bancorp reported earnings per share (EPS) of $0.73, beating both the Zacks Consensus Estimate and the fourth quarter of 2022 by 9%. Additionally, the company reported revenue of $100.79 million, which fell slightly short of the Zacks Consensus Estimate but still exceeded the previous year's fourth quarter revenue by an impressive 14.5%.

For the full year 2023, Byline Bancorp reported EPS of $2.89, marking a 22.5% increase from the previous year. The company's revenue for the year reached $386.9 million, a 20% year-over-year increase.

Despite the elevated Net Charge-Offs (NCOs) in the fourth quarter, which were partially tied to an office CRE loan, Race remains confident in Byline Bancorp's asset quality going forward. Piper Sandler anticipates that the company's proactive, conservative, and relationship-based credit approach will ensure that asset quality is not a concern moving forward.

During the earnings call, Byline Bancorp's President, Alberto Paracchini, expressed optimism for the future, stating, "We entered 2024 on solid footing and with great momentum." Paracchini emphasized the company's commitment to maintaining credit, pursuing disciplined loan growth, and capitalizing on market opportunities.

According to WallStreetZen, Race is ranked in the top 14% of all Wall Street analysts, with an impressive average return of 11% and a win rate of 62.7%. Their expertise lies in the Financial Services and Healthcare sectors, making their analysis of Byline Bancorp particularly valuable.

It is worth noting that 100% of the top-rated analysts currently rate BY as a Strong Buy or Buy. No analysts consider it a Hold, and there are no recommendations to sell the stock.

However, despite the positive analyst rating, Byline Bancorp's stock price has experienced a decline of 3.5% since the release of its latest quarterly report on January 24, 2024. Year-over-year, the stock is down 6.9%. Byline Bancorp's performance has lagged behind the broader S&P 500, which has experienced a decline of 22.6% during the same period.

Byline Bancorp Inc. is the holding company for Byline Bank, a full-service bank based in Chicago, IL. Byline Bank offers a wide range of commercial and retail banking products and services, including small ticket equipment leasing solutions. The company was founded in 1978 and has established itself as a prominent player in the banking industry.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.