Should Piper Sandler's Upgrade After the FLIC Merger Drive a Rethink for ConnectOne (CNOB) Investors?

• Piper Sandler recently upgraded ConnectOne Bancorp, assigning an "Overweight" rating and citing confidence in the company's growth potential and earnings outlook.
• This analyst endorsement follows ConnectOne Bancorp's completed integration of The First of Long Island Corporation and highlights renewed investor focus on its merger-driven expansion and operational performance.
• We’ll examine how Piper Sandler’s upgraded rating, which highlights growth potential, could shift the investment narrative for ConnectOne Bancorp.

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ConnectOne Bancorp Investment Narrative Recap

To be a shareholder in ConnectOne Bancorp right now, you need to believe that the company’s expanded footprint and scale from its merger with First of Long Island can drive sustainable growth in loans, deposits, and revenue, despite local market risks and integration challenges. Piper Sandler’s recent upgrade affirms confidence in these catalysts and may support renewed investor interest, but short-term risks from commercial real estate loan concentration and economic sensitivity remain; the upgrade does not materially alter this risk-reward balance.

Among the latest company announcements, the third-quarter earnings report stands out. ConnectOne Bancorp delivered strong increases in net interest income and quarterly net income versus the prior year, despite overall profit for the nine months trailing lower year-on-year, a sign that merger synergies may be providing operational lift even as profitability pressures from heightened charge-offs and integration costs linger.

By contrast, investors should also consider that the company’s exposure to commercial real estate lending after the merger may make future results more sensitive to…

Read the full narrative on ConnectOne Bancorp (it's free!)

ConnectOne Bancorp's narrative projects $868.6 million in revenue and $469.2 million in earnings by 2028. This requires 53.1% annual revenue growth and a $437.8 million increase in earnings from the current $31.4 million.

Uncover how ConnectOne Bancorp's forecasts yield a $29.12 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community members estimate ConnectOne Bancorp’s fair value between US$29.13 and US$55.24 per share. With recent growth driven by merger integration, it’s clear that opinions on future profitability potential can diverge, explore more views to inform your decisions.

Explore 2 other fair value estimates on ConnectOne Bancorp - why the stock might be worth over 2x more than the current price!

Build Your Own ConnectOne Bancorp Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ConnectOne Bancorp research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.
• Our free ConnectOne Bancorp research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ConnectOne Bancorp's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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