Keefe, Bruyette & Woods has lifted its price target on Atlantic Union Bankshares (AUB) to $40.00, up from $38.00, while maintaining its existing rating on the regional bank's shares.
The firm made the change after Atlantic Union reported quarterly results that surpassed expectations. The company posted stronger net interest income and increased fee income, although those gains were partially offset by higher expenses during the period.
Analyst coverage data from InvestingPro indicates that the consensus outlook for the bank's net income is positive for the year, and that three analysts have revised their earnings expectations upward in response to the quarter's results.
Operationally, the bank recorded solid end-of-period loan growth of 6% for the quarter. At the same time, end-of-period deposits declined over the quarter. Credit trends showed improvement: net charge-offs were reported at 0.01% for the period. InvestingPro assigns Atlantic Union a "GREAT" overall financial health score based on its metrics.
Management reiterated guidance for 2026 that was consistent with the outlook presented at the company's Investor Day. In light of improved trends during the quarter, Keefe, Bruyette & Woods said it is increasing its 2026 estimates slightly to reflect a higher net interest margin.
The research firm framed the new $40 price target as equivalent to 11 times earnings per share and 2 times tangible book value, citing "better revenue momentum" as a key justification for the upward revision.
Market multiples cited in the research note show Atlantic Union trading at a price-to-earnings ratio of 14.18 and a price-to-book ratio of 1.1. The bank offers a dividend yield of 3.81%. InvestingPro data also records that the company has paid dividends for 32 consecutive years and has increased its dividend for 15 consecutive years.
Separately, Atlantic Union reported fourth-quarter 2025 results that beat consensus forecasts. The company reported earnings per share of $0.97 versus an expected $0.86, a surprise of 12.79%. Revenue for the quarter came in at $391.79 million, ahead of the $379.01 million analysts had forecast.
Following the quarterly results, TD Cowen adjusted its price target for Atlantic Union to $46.00 from $45.00 while maintaining a Buy rating. TD Cowen attributed its revision to higher revenue and lower provision expenses, noting these factors as contributors to the bank's recent performance.
Investors evaluating Atlantic Union may weigh the combination of stronger revenue drivers, modestly improved credit metrics and the bank's continuing dividend track record against the deposit decline and higher expenses noted in the quarter. Management's steady 2026 guidance and small upward revision to 2026 estimates by Keefe, Bruyette & Woods reflect a cautious but positive reassessment tied principally to net interest margin dynamics.
Summary
Keefe, Bruyette & Woods raised its price target on Atlantic Union Bankshares to $40.00 from $38.00 and kept its rating unchanged following a quarter that exceeded expectations on earnings and revenue. Analysts and the research firm pointed to stronger net interest income, better fee income and improving credit metrics as drivers for modestly higher 2026 estimates.