Mercantile Bank

Analysts Lower Mercantile Bank Target as Margins Narrow and Expenses Rise Despite Solid Results

AN

AnalystConsensusTarget

AnalystConsensusTarget

Not Invested

Based on Analyst Price Targets

Published

20 Oct 24

Updated

05 Dec 25

n/a

n/a

AnalystConsensusTarget's Fair Value

n/a

1Y

0.8%

7D

6.4%

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1Y

0.8%

7D

6.4%

You can edit this narrative until Dec 6 11:05 AM. Then, changes will post as Updates.

Author's Valuation

US$52.86.1% undervalued

AnalystConsensusTarget Fair Value

Shared on 05 Dec 25

MBWM: Clean Asset Quality Will Support Upside Despite Higher Expense Drag

Analysts have modestly reduced their price target on Mercantile Bank to $52.00 from $55.00, citing solid Q3 results with clean asset quality and strong deposit growth, but also noting a higher expense base, tighter net interest margins, and softer loan growth due to elevated payoffs. Analyst Commentary Analyst commentary on Mercantile Bank reflects a balanced view, with constructive interpretations of the latest quarter offset by clear acknowledgments of emerging headwinds for growth and profitability.

Shared on 21 Nov 25

MBWM: Asset Quality And Deposit Momentum Will Offset Higher Expenses Ahead

Analysts have reduced Mercantile Bank’s price target from $55 to $52. They cite a larger expense base, tighter net interest margin, and slower loan growth, even as asset quality and deposit growth continue.

Shared on 06 Nov 25

MBWM: Medium-Term Strength Will Rely On Asset Quality Amid Higher Expenses

Analysts have lowered their price target for Mercantile Bank from $55 to $52. They cite higher expenses, a tighter net interest margin, and slower loan growth, despite continued strong asset quality and deposit growth.

Shared on 23 Oct 25

Fair value Decreased 5.04%

Analysts have reduced their price target for Mercantile Bank from $55.60 to $52.80. They cite larger expenses, slightly lower profit margins, and modest loan growth, even though the company reported solid Q3 results and continued strength in assets and deposits.

Shared on 31 Jul 25

Fair value Increased 8.75%

The substantial upward revision in Mercantile Bank's price target reflects a marked improvement in revenue growth forecasts and a significantly lower forward P/E, indicating improved earnings expectations and valuation, with the fair value rising from $51.12 to $55.60. What's in the News Raised quarterly cash dividend to $0.38 per share, reflecting increases of nearly 3% from the prior quarter and 6% from the third quarter of 2024.

Shared on 01 May 25

Fair value Increased 3.41%

Shared on 23 Apr 25

Fair value Increased 0.80%

AnalystConsensusTarget has increased revenue growth from 6.0% to 7.9%.

Shared on 17 Apr 25

Fair value Decreased 2.47%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 09 Apr 25

Fair value Decreased 3.52%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 02 Apr 25

Fair value Increased 1.83%

Shared on 26 Mar 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 19 Mar 25

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

Shared on 11 Mar 25

Fair value Increased 2.12%

AnalystConsensusTarget made no meaningful changes to valuation assumptions.

AnalystConsensusTarget Fair Value

US$52.8

6.1% undervalued

Future estimation in

% p.a.

0

Decrease

Increase

Current revenue growth rate

9.39%

Banks revenue growth rate

0.26%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

7.69%

Calculation

US$103.96m

Earnings '28

x

10.17x

PE Ratio '28

=

US$1.06b

Market Cap '28

US$1.06b

Market Cap '28

/

16.32m

No. shares '28

=

US$64.75

Share Price '28

US$64.75 Share Price '28

Discounted to 2025 @ 7.75% p.a.

=

US$51.76

Fair Value '25