Barclays moved to an Underweight rating on Independent Bank Corp (NASDAQ:INDB), assigning an $80.00 price target. At the time Barclays published its note, the stock was trading at $80.78, slightly beneath a 52-week high of $81.47, according to InvestingPro data.
The downgrade reflects Barclays’ view that Independent Bank’s valuation multiples are likely to remain below historical averages for the foreseeable future, driven by a combination of near-term credit concerns and integration risk from a recent acquisition. Barclays calculated that the $80 price target equates to 11.4 times its 2026 operating EPS estimate, and said this represents a discount to the peer-group median in light of recent credit-quality developments.
Central to Barclays’ caution is the bank’s material exposure to office lending. The research note states that Independent Bank has already experienced credit problems in that portfolio. While management has signaled that credit pressures may be moderating, Barclays highlighted the potential for longer-term challenges, particularly in the Boston and Massachusetts markets where the bank has concentration.
Barclays also identified potential friction from the sizable EBTC acquisition the bank completed in the third quarter of 2025. The firm warned that integration could present obstacles that weigh on organic growth during the transition period.
Those concerns sit alongside data points that underline Independent Bank’s recent operating strength. InvestingPro data show the bank has paid dividends for 32 consecutive years and currently yields 2.92%. In the fourth quarter of 2025 the bank reported adjusted operating EPS of $1.70, marginally above the $1.65 consensus, and revenue of $253.93 million versus an expected $249.64 million.
Those results prompted Raymond James to lift its price target to $94.00 from $84.00 and to retain a Strong Buy rating, citing expansion in the bank’s core net interest margin driven by asset repricing and lower funding costs. Despite the upbeat quarter and the analyst upgrade from Raymond James, Independent Bank’s shares traded lower in premarket activity following the Barclays note.
The juxtaposition of robust recent financial performance and Barclays’ more cautious outlook illustrates a split among analysts between confidence in near-term earnings momentum and concern over credit and execution risks. Barclays’ downgrade emphasizes valuation pressure and the potential for credit quality and integration issues to persist, even as other firms point to margin improvements and solid quarterly results.
Contextual note: The information above is drawn from analyst commentary, company-reported quarterly figures and InvestingPro data cited in the reports referenced.