Piper Sandler Faces Growth Limitations Amid M&A Activity
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Benzinga
- Accelerating M&A Activity: Piper Sandler is positioned to benefit from increasing M&A activity in the U.S. banking sector; however, analysts indicate that its limited earnings growth potential may hinder future market performance.
- Rating and Price Target: BofA Securities analyst Ebrahim Poonawala initiated coverage with an Underperform rating and a price target of $385, reflecting a cautious outlook on the company's future profitability.
- Market Position Analysis: Piper Sandler ranks second in deals valued under $1 billion but ranks last among boutique investment banks with an average deal size of $1.6 billion, indicating a relative disadvantage in the market.
- Growth Strategy Limitations: While focusing on smaller deals aids incremental growth, analysts believe this strategy limits Piper Sandler's ability to achieve earnings growth that surpasses peers, resulting in its stock price lacking appeal compared to competitors.
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Analyst Views on PIPR
Wall Street analysts forecast PIPR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PIPR is 386.00 USD with a low forecast of 386.00 USD and a high forecast of 386.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 347.560
Low
386.00
Averages
386.00
High
386.00
Current: 347.560
Low
386.00
Averages
386.00
High
386.00
About PIPR
Piper Sandler Companies is an investment bank and institutional securities firm, serving the needs of corporations, private equity groups, public entities, non-profit entities and institutional investors in the United States and internationally. The Company operates in one segment, providing investment banking services, institutional sales and trading services for various equity and fixed income products, and research services. It provides a broad set of products and services, including financial advisory services; equity and debt capital markets products; public finance services; institutional brokerage services; fundamental equity and macro research services; fixed income services; and alternative asset management strategies. The Company operates alternative asset management funds in merchant banking and healthcare in order to invest firm capital and to manage capital from outside investors. It offers both equity and fixed income advisory and trade execution services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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