Update shared on 29 Nov 2025
Analysts have raised their price target for UMB Financial by $14, citing stronger expected growth in key segments and continued momentum in legacy business operations.
Analyst Commentary
Analysts have provided nuanced commentary regarding UMB Financial’s prospects following the recent price target increase. Their insights reflect both optimism and caution as they evaluate the company’s trajectory and valuation.
Bullish Takeaways
- Bullish analysts see continued momentum in legacy operations, contributing to improved confidence in long-term earnings consistency.
- Raising expected 2026 operating EPS forecasts based on improved growth in divisions previously expected to decline signals strengthening fundamentals.
- Expansion within key segments is viewed as sustainable, which supports an upward revision in the overall price target and valuation.
- Enhanced growth outlook is credited to successful execution on strategic initiatives, which helps to offset previous headwinds.
Bearish Takeaways
- Some caution that the revised growth outlook depends on divisions transitioning from contraction to growth, which presents execution risk.
- Elevated expectations could increase market sensitivity to any future operational missteps or macroeconomic headwinds.
- The higher price target assumes ongoing momentum. However, legacy challenges may still emerge if business trends reverse.
What's in the News
- UMB Financial’s board of directors declared a dividend of $0.43 per share, payable January 2, 2026, to shareholders of record as of December 10, 2025 (Key Developments).
- The company reported third quarter net charge offs of $18.4 million, more than double the $8.5 million reported a year ago for the same period (Key Developments).
- From July 1 to September 30, 2025, the company reported no shares repurchased under its current buyback program, completing the period with 0 shares repurchased for $0 million (Key Developments).
Valuation Changes
- Consensus Fair Value remains unchanged at $137.69 per share.
- Discount Rate has risen slightly from 6.96% to 6.96%.
- Revenue Growth projection remains virtually the same at approximately 14.10%.
- Net Profit Margin is unchanged at 35.64%.
- Future P/E has fallen moderately from 13.35x to 12.49x, indicating a lower valuation on expected future earnings.
Disclaimer
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