Update shared on04 Aug 2025
Fair value Increased 5.69%Analysts have raised UMB Financial’s price target from $124.64 to $131.73, citing improving loan growth, favorable credit conditions, and sector consolidation, while highlighting discounted valuations and a more positive regulatory outlook as key drivers of increased fair value.
Analyst Commentary
- Bullish analysts highlight positive loan growth trends and early signs of loan acceleration, supporting upward revisions to price targets.
- Improving economic outlook and benign credit quality are cited as factors contributing to optimism for the sector.
- Smaller M&A activity and sector consolidation are viewed favorably, suggesting opportunities for enhanced scale and efficiencies.
- Valuation multiples for mid-cap banks remain discounted relative to larger peers, presenting perceived upside potential ahead of earnings.
- A more favorable operating and regulatory environment, with ongoing industry deregulation, is seen as a tailwind for UMB Financial’s business outlook.
What's in the News
- Net charge-offs for Q2 2025 totaled $15.5 million (0.17% of average loans), down from $35.9 million in the previous quarter, with $6.5 million related to loans acquired from HTLF.
- UMB Financial added to multiple Russell growth and small/mid-cap indices, including Russell 2000 Growth, Russell 2500 Growth, Russell 3000 Growth, and related defensive and extended indices.
- Announced redemption of all outstanding Series A 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock at $10,000 per share, with regular dividends paid separately.
Valuation Changes
Summary of Valuation Changes for UMB Financial
- The Consensus Analyst Price Target has risen from $124.64 to $131.73.
- The Consensus Revenue Growth forecasts for UMB Financial has significantly fallen from 25.4% per annum to 19.2% per annum.
- The Future P/E for UMB Financial has risen slightly from 11.84x to 12.30x.
Disclaimer
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