DA Davidson increased its price target on Trustmark Corporation to $44.00 from $42.00 and kept a Neutral rating on the regional bank. The new target implies only limited upside from the share price at the time of the update, which was $42.64, and the stock was trading close to its 52-week high of $43.29. Available fair value estimates indicate the shares may be undervalued relative to those measures.
The brokerage’s revision follows Trustmark’s most recent earnings release. The bank reported stronger-than-expected diluted earnings per share for the quarter and the trailing twelve months, but some core revenue metrics lagged forecasts. Diluted EPS for the trailing twelve months stood at $3.70, producing a trailing price-to-earnings multiple of 11.45.
While earnings outperformed consensus, DA Davidson highlighted that the upside to EPS was driven mainly by lower provision expense rather than by stronger underlying operations. Pre-provision net revenue per share, a gauge of core operating performance before credit-related charges, came in below expectations, underscoring a disconnect between the headline EPS result and the firm’s operating trends.
Trustmark also issued guidance for 2026 that DA Davidson characterized as largely consistent with market expectations. The company projected mid-single-digit growth in both loans and deposits and provided outlooks for net interest income, fee income, and noninterest revenue that the research team viewed as aligning with consensus forecasts. Those forward-looking items influenced DA Davidson’s decision to maintain a Neutral rating despite the modest price-target increase.
The company’s fourth-quarter 2025 results are part of the backdrop informing the analyst view. Trustmark posted a diluted EPS of $0.97 for the quarter, beating the $0.91 estimate by 6.59 percent. Revenue for the period totaled $204.1 million, which was slightly below the $206.64 million expectation, a 1.23 percent shortfall. The combination of an EPS beat and a revenue miss reflects the mixed nature of the quarter: solid bottom-line performance that was supported by lower provisioning, alongside a small revenue shortfall.
Investors and market participants will likely weigh the sustainability of lower provision expense against the pressures evident in pre-provision operating results. Given the guidance that aligns with consensus, DA Davidson’s Neutral rating signals a wait-and-see posture while the bank’s core revenue generation and credit expense trends become clearer.
Context and implications
The analyst action increases the implied valuation band slightly but preserves a cautious recommendation. For market participants focused on regional banks and financials, the development highlights competing forces: earnings supported by provision dynamics and guidance that does not materially change expectations for loan, deposit, or revenue growth in 2026.