Orrstown Financial assumed with an Overweight at Piper Sandler

Piper Sandler assumed coverage of Orrstown Financial (ORRF) with an Overweight rating and $43 price target The firm notes the company’s profitability is projected to surpass peers. While the short-term priority continues to be achieving better profitability metrics from the Codorus Valley Bancorp deal, Piper believes management’s focus could soon shift back to accelerating growth through another transaction. Lastly, the firm believes the stock is discounted on an earnings basis, which it doesn’t see as warranted considering Orrstown’s profitability outlook appears stronger than peers and asset quality trends appear comparable.