Piper Sandler reiterates Park National stock rating at neutral

Piper Sandler has maintained a Neutral stock rating and a $217.00 price target on Park National (NYSE:PRK). The current trading price of the stock is $180.25, indicating a potential upside of around 20% to the analyst's target, despite the share price already rising by more than 20% year-to-date. The company's analysts held investor meetings in Ohio with Park National's leadership, including President & CEO Matt Miller, CFO Brady Burt, and CCO Bryan Campolo.

Piper Sandler anticipates Park National to maintain a top decile profitability profile with projected returns of 1.8%-2.0% on assets and 16%-17% on tangible common equity for the second half of 2026 and 2027. The bank's current return on assets of 1.68% is near the lower end of these projections. The firm expects mid-single-digit organic growth in Park National's balance sheet through commercial successes in its metropolitan areas.

The bank might also announce an accretive acquisition in the near-to-medium term. Piper Sandler sees potential for an uplift in core net interest margins, increased fee income, and reduced operating expenses due to the recent FIZN systems conversion. The stock is currently valued at 2.3 times its tangible book value and 13.9 and 13.6 times its 2026 and 2027 earnings estimates, respectively.

According to InvestingPro analysis, the stock appears overvalued relative to its estimated fair value. However, for long-term investors, the company has a history of paying dividends for 40 consecutive years.