HBT Financial price target lowered to $21 from $22 at JPMorgan

JPMorgan analyst Steven Alexopoulos lowered the firm’s price target on HBT Financial to $21 from $22 and keeps an Underweight rating on the shares. Heading into the Q2 mid- and small-cap bank earnings season, the analyst expects the fundamental trends which led to several guide-downs at the recent Morgan Stanley conference to be on broader display this upcoming quarter, including loan growth remaining tepid, deposit pricing competition remaining intense, and non-interest bearing deposit mix still grinding lower. However, the firm believes that when the Federal Reserve eventually reduces the funds rate and reverses the deeply inverted yield curve, current headwinds “are likely to quickly transform into tailwinds,” including the potential for improving net interest margin outlooks, improving loan outlooks, diminishing credit concerns, and the return of the capital return lever. It tells investors to concentrate long positions within the banks best positioned to drive strong intrinsic value.