DA Davidson revised upward its price target for Simmons First National Corporation (NASDAQ: SFNC) this Thursday, raising it to $23 from the previous $21 quotation. This adjustment comes in light of Simmons First National's fourth-quarter outcomes, which surpassed consensus expectations primarily due to a stronger net interest margin expansion than anticipated. Presently, shares of Simmons First National trade near $21.34, having risen nearly 9% over the past week and achieving an 11.4% gain year-to-date, indicating improving market sentiment.
The brokerage firm views the latest quarter as a significant performance milestone, providing a firmer foundation for 2026 in comparison to prior forecasts. DA Davidson highlights that this enhanced starting position supports the expectation that Simmons First National will deliver higher sustainable returns on assets (ROA) and returns on tangible common equity (ROTCE) moving forward. Analysts also note the possibility of the bank adopting a more growth-centric strategy as the year unfolds, which could further elevate earnings projections.
Although the bank has experienced a loss across the previous twelve months, industry expectations are for a return to profitability within the current year. Credit metrics showed quarter-over-quarter improvements, aided by the resolution of previously flagged non-performing loans and a strategic loan sale. Management’s guidance for 2026 suggests net charge-offs near 0.25%, which is a notable improvement from 0.47% recorded in 2025. The stock currently trades at roughly 0.91 times its book value, implying valuation appeal for investors targeting regional banking exposure.
Despite the positive revisions, DA Davidson maintained its Neutral rating for Simmons First National's equity, signaling a cautious but optimistic outlook. This position aligns with the broader analyst consensus, which hovers between Hold and Sell with an average rating of 2.43 and price targets ranging between $22 and $25. The bank continues to be attractive for income investors, supported by its longstanding dividend history of over five decades and a current yield of approximately 4.05%.
Complementary to DA Davidson’s update, other financial institutions have recently offered their perspectives. Simmons First National's fourth-quarter financial disclosures revealed earnings per share of $0.54, exceeding analyst estimates of $0.49, alongside revenues of $249 million, above the anticipated $238.72 million mark. Keefe, Bruyette & Woods responded by elevating their price target from $21 to $23, commending the bank's substantive loan growth and favorable net interest margin outcomes. Additionally, Raymond James upgraded Simmons First National stock, moving it from Market Perform to Outperform status, highlighting continued operational momentum and the impact of the company’s Better Bank Initiative.
DA Davidson’s analytical team acknowledges the bank's strong quarterly results, noting solid fee income and effective expense containment, but opted to keep their rating steady with a $21 price target. The company's initiatives to enhance internal processes and operational efficiency have been recognized across the analyst community, with Raymond James characterizing the progress as reminiscent of a 'self-help story' due to meaningful structural improvements.
Overall, Simmons First National's recent performance has bolstered confidence among investors and analysts alike, positioning the bank as a potentially valuable participant in the regional banking sector. However, the road to sustained profitability and growth remains contingent on execution and evolving economic conditions.