Stephens has raised its price target for Southern Missouri Bancorp (NASDAQ: SMBC) to $73 from a previous target of $71, reaffirming an Overweight rating on the shares. This adjustment closely aligns with InvestingPro's Fair Value estimate, indicating that the bank's stock remains undervalued even as it trades near its 52-week high of $65.64.
The revision follows Southern Missouri Bancorp’s fiscal second-quarter 2026 performance, where earnings per share (EPS) surpassed forecasts. Stephens attributes this success to robust fee income and improving credit conditions, which together contributed to a reduction in the loan loss provision expense. Over the trailing twelve months, the bank has sustained profitability with a diluted EPS of $5.78 and is trading at an attractive price-to-earnings (P/E) ratio of 11.03.
While pre-provision net revenue for the recent quarter fell 2% short of consensus expectations—impacted by lower net interest income and elevated operating expenses—credit trends within the bank remained steady, according to Stephens. The firm anticipates a moderation in net charge-offs and loan loss provisions over the upcoming year, alongside slower expansion in net interest margins as the influence of back book loan repricing diminishes.
Currently, Southern Missouri Bancorp is valued at 1.45 times tangible book value per share. Stephens views the bank’s capital strategy as increasingly balanced, noting its combined approach through stock repurchases and merger and acquisition activity. The bank has an established track record of capital management, maintaining dividend payments for 32 consecutive years and consecutively raising dividends for 14 years. Moreover, with a price/earnings to growth (PEG) ratio of just 0.42, SMBC appears attractively valued relative to its anticipated growth trajectory. For those seeking further analysis, InvestingPro provides a comprehensive evaluation of SMBC’s valuation and growth metrics via its Pro Research Report.
Additionally, Southern Missouri Bancorp reported its financials for the fiscal second quarter of 2025, posting EPS of $1.62. This figure exceeds analysts’ consensus estimate of $1.54, representing a 5.19% beat. However, revenue for the quarter amounted to $49.65 million, slightly below the expected $49.96 million. This juxtaposition underscores the bank’s ability to outperform earnings expectations despite facing a marginal revenue shortfall. Market participants continue to monitor how Southern Missouri Bancorp will address this revenue variance in future reporting periods.
The recent earnings results remain a key focal point for investors and analysts following Southern Missouri Bancorp, offering insights into the institution’s financial robustness and operational efficiency amid evolving market conditions.