Renasant (RNST): Taking a Fresh Look at Valuation After Recent Sideways Share Price Performance

Renasant (RNST) has been grinding through a mixed stretch, with the share price roughly flat over the month but down over the past 3 months, even as fundamentals quietly improved.

See our latest analysis for Renasant.

Over the past year, Renasant has essentially moved sideways, with a modest year to date share price return of 0.57 percent and a slightly negative 1 year total shareholder return of 2.87 percent. This suggests momentum is still rebuilding after the recent 90 day pullback.

If you are weighing where to put fresh capital next, this could be a good moment to compare Renasant with other banks and explore solid balance sheet and fundamentals stocks screener (None results).

With earnings growing faster than revenues and the stock still trading at a notable discount to analyst targets and intrinsic value estimates, is Renasant quietly undervalued or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 15% Undervalued

With Renasant closing at $35.56 versus a most-widely-followed fair value near the low $40s, the narrative frames a meaningful upside driven by aggressive growth assumptions.

The combined company's diversification into mortgage banking, wealth management, and capital markets services is expected to deliver higher non-interest income and reduce earnings volatility, supporting more consistent earnings growth in the long term.

Read the complete narrative.

Want to see what powers that upside claim? The story leans on rapid top line expansion, sharply higher margins, and a future earnings multiple that challenges typical regional bank norms. Curious which specific forecasts make those targets add up? Read on to unpack the full narrative and the numbers behind it.

Result: Fair Value of $41.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upbeat view could unravel if growth in the Southeast region stalls, or if merger integration missteps drive higher credit losses and operating costs.

Find out about the key risks to this Renasant narrative.

Another Lens on Value

While the narrative leans on future earnings power, today Renasant trades on a price to earnings ratio of about 23 times. This is well above both US banks at roughly 11.5 times and peers near 16.1 times, and even above a fair ratio of 20 times, which points to valuation risk if growth disappoints.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Renasant Narrative

If you would rather interrogate the numbers yourself or challenge these assumptions, you can quickly build a personalised Renasant thesis from scratch: Do it your way.

A great starting point for your Renasant research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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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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