Raymond James initiates Amalgamated Bank stock coverage with outperform rating

Raymond James has begun covering Amalgamated Bank (NASDAQ:AMAL) with an outperform rating and an investment target of $55.00, according to Reuters. The current stock price of $48.14 implies a potential upside of around 14%. Shares have increased by 71% over the past year, demonstrating robust investor belief in the bank's growth outlook.

Raymond James describes Amalgamated Financial Corp. as a highly profitable, commercially oriented bank boasting a low-cost deposit franchise that should facilitate sustained earnings growth and significant profitability as the bank refines its earning asset base through commercial loan and PACE growth, as well as fixed-rate asset repricing.

The firm attributes its optimistic stance on the bank's future performance to ongoing investments in technology and the recruitment of seasoned commercial bankers, which should bolster the bank's organic growth capabilities and enhance operating leverage as revenue expands. Raymond James has valued the shares at 10.2 times its projected 2027 earnings per share, positioning this valuation in line with small-cap industry counterparts.

The firm considers the shares to be favorably priced given their above-peer profitability and promising growth trajectory. This perspective aligns with InvestingPro's analysis, which indicates the stock is undervalued based on its Fair Value calculation. InvestingPro provides 10 additional exclusive tips for AMAL, offering investors further in-depth analysis.

Notably, Amalgamated Financial Corp. reported earnings of $1.15 per share for the second quarter of 2026, surpassing expectations of $1.00 per share. Revenue for the period reached $98.4 million, outpacing the expected $92.09 million, and the company reported a record net income of $34.8 million. These impressive results underscore the company's strong operating leverage and improved profitability.

However, no upgrades or downgrades have been issued by analyst firms following these results. Amalgamated Financial's performance remains a focal point for investors and analysts.