Piper Sandler analyst R. Scott Siefers raised the firm’s price target on Associated Banc-Corp (ASB) to $28 from $26 and keeps a Neutral rating on the shares after the company announced a balance sheet repositioning in which it has sold $1.3B of securities and has agreed to sell $0.7B in mortgage loans. The actions also increase its funding capacity by paying down FHLB advances, while enrichening asset yields. Associated Banc-Corp will invest $1.5B into new investment securities. These transactions will push Associated Banc-Corp into a net loss in Q4, but the net impact of the recent capital raise and these actions should be accretive to 2025/2026 operating EPS, Piper adds.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on ASB:
- Associated Banc-Corp price target raised to $27 from $24 at Barclays
- Associated Banc-Corp Repositions Balance Sheet for Growth
- Associated Banc-Corp announces balance sheet repositioning transactions
- Associated Banc-Corp price target raised to $26 from $24 at Wells Fargo
- Associated Banc-Corp Advances Growth and Market Position