Raymond James cuts BankUnited stock price target to $48 on revenue

Raymond James has lowered its price target on BankUnited Inc. shares to $48 from $49, while maintaining an Outperform rating. The stock currently trades at $41.77, suggesting potential upside. The new target reflects lower balance sheet growth, net interest income, and fee income expectations. The firm attributes these factors to pricing discipline, elevated mortgage rates, and transaction timing.

Despite the revenue shortfalls, management anticipates continued net interest margin expansion into 2027. The bank's commercial pipelines remain healthy, and the non-depository financial institution portfolio reduction is largely completed. Credit trends are reported as benign, with the middle market commercial banking sector still generating double-digit growth.

BankUnited Inc. recently reported adjusted earnings of $1.03 per share, aligning with Wall Street expectations. The company's dividend yield stands at 3.12%, with 16 consecutive years of dividend payments, highlighting its commitment to shareholder returns.