- Loan growth will likely remain subdued as rate cuts will lift demand, but lackluster economic activity will dampen the demand for credit products.
- A large chunk of low-yielding loans and securities are scheduled to mature soon. Reinvestment will lift the margin.
- Financial Institutions is offering a dividend yield of 4.9% with an implied payout ratio of only 37%.
- The December 2025 target price suggests a double-digit price upside from the October 29 closing price.
Earnings growth of Financial Institutions (NASDAQ:FISI) will likely be flattish to slightly positive in 2024 and 2025. Subdued loan growth and slight margin expansion will likely support the bottom line. As a result, I’m expecting the earnings
Content retrieved from: https://seekingalpha.com/article/4731325-financial-institutions-good-dividend-yield-room-for-price-upside-despite-the-recent-rally.
