Piper Sandler lowers Home Bancshares price target to $34 on growth

Piper Sandler has revised its price target for Home Bancshares stock (NYSE:HOMB) downward to $34, down from $36, while keeping an Overweight rating. The firm's third-quarter 2026 results exceeded expectations, with earnings per share surpassing estimates by $0.02. This improvement was driven by increased net interest income and no provisions.

However, the bank experienced a decline in loans by 5.0% and total deposits by 7.5% on an annualized quarter-over-quarter basis. Piper Sandler has adjusted its 2026 earnings per share estimate to $2.50, unchanged from the previous estimate, and raised its projections for 2027 and 2028 to $2.54 and $2.66, respectively. The price target of $34 translates to approximately 12.5 times the 2027 earnings estimate, taking into account the additional value from excess capital.

Analysts remain optimistic about Home Bancshares' prospects, noting its profitability and high-quality status, supported by an 11% return on equity and a current P/E ratio of 11.86. The investment firm highlights that HOMB has consistently increased its dividend for 12 consecutive years, with a current yield of 3.19%. For investors seeking further analysis, the InvestingPro Tip suggests that the stock is undervalued, and a detailed Pro Research Report is available for HOMB and 1,400+ other US equities.

Home Bancshares' latest earnings report, released recently, reported record third-quarter 2026 earnings of $129.1 million, or $0.65 per share, exceeding Wall Street's expectations. Despite the strong earnings, revenue fell short of estimates, with $288.4 million generated versus the anticipated $294.44 million. Analysts have commended Home Bancshares for maintaining robust capital levels and shareholder returns, even amidst revenue challenges, emphasizing the company's strong financial performance.