
ServisFirst Bancshares (SFBS) Stock Forecast & Price Target
ServisFirst Bancshares (SFBS) Analyst Ratings
Bulls say
Servisfirst Bancshares has demonstrated strong fundamentals, evidenced by a notable increase in loan production capabilities with the addition of seven new loan officers, which is expected to enhance future loan demand. The bank's forecast for net interest margin (NIM) expansion of approximately 7-10 basis points per quarter, alongside a projected increase in earnings estimates for 2025 and 2026, reflects a positive trajectory in profitability. Additionally, the bank has maintained impressive efficiency levels, with a second quarter return on assets (ROA) of 1.50% and a return on equity (ROE) exceeding 15.5%, underlining its robust operational performance despite fluctuations in loan growth.
Bears say
ServisFirst Bancshares reported a modest loan growth of approximately 2.4% on a linked-quarter annualized basis, alongside a decrease in net interest margin (NIM) to 3.09%, attributed to a significant relationship moving to non-accrual which impacted overall performance through an interest reversal. The core earnings per share (EPS) fell short of consensus estimates, primarily driven by weaker net interest income (NII) and elevated expenses, prompting adjustments to future earnings expectations. Moreover, the substantial $96 million in non-accrual loans poses ongoing credit quality concerns that may further exert downward pressure on the stock, leading to lowered forward estimates for earnings.
This aggregate rating is based on analysts' research of ServisFirst Bancshares and is not a guaranteed prediction by Public.com or investment advice.
ServisFirst Bancshares (SFBS) Analyst Forecast & Price Prediction
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