PIPR Stock Forecast & Price Target

Piper Sandler has demonstrated a significant uptick in its fundraising activities, particularly in continuation vehicles, increasing by an estimated 400%, which positively influences the company's revenue streams. Management projects a potential rise in productivity per senior banker from $6 million to over $8 million as the market stabilizes, indicating strong operational efficiency and growth potential. The firm's successful evolution in the middle market, along with a solid performance in advisory services—its largest revenue source—positions Piper Sandler favorably for future expansion, particularly in private equity, which is outpacing the broader investment banking sector.

Piper Sandler's stock outlook appears negative due to a significant year-over-year decline in its healthcare sector, which reflects broader challenges in the capital markets influenced by rising interest rates and policy uncertainty. Additionally, the firm's revenues may be adversely impacted by a deteriorating macroeconomic environment, as potential disruptions could affect business activity and earnings. Lastly, recent volatility in the market has prompted a downward revision of the firm's earnings per share (EPS) estimates for 2025, signaling a more cautious approach moving forward amidst a backdrop of reduced performance and potential headwinds.