Brokerage raises MBIN price target by $3 amid strong earnings growth and share repurchase plans totaling $100 million.
Morgan Stanley increased its price target for Merchants Bancorp (NASDAQ:MBIN) to $49 from $46, maintaining a Buy rating. The move follows a 43% year-to-date gain in MBIN shares and reflects optimism about revenue trends in the banking sector ahead of earnings season.
Merchants Bancorp reported a 16% rise in net income and a 34% increase in EPS year-over-year, alongside an 8% growth in total assets and a 4% rise in deposits. The bank also repurchased $3 million in shares during the quarter and plans to buy back up to $100 million over the next year. The firm holds over $20 billion in assets.
The brokerage noted the broader rally in U.S. bank stocks since the start of Q2, citing building revenue momentum as a key driver for its constructive outlook on the sector.