On Wednesday, DA Davidson adjusted its price target for Alerus Financial Corp . (NASDAQ: NASDAQ:ALRS), bringing it down to $22.00 from the previous target of $23.00. The firm has decided to maintain a Neutral rating on the stock.
The revision follows Alerus Financial's recent financial performance, which has presented some concerns for the analyst at DA Davidson. Notably, there has been an increase in non-performing assets (NPAs) and variability in net charge-offs (NCOs) year-to-date. These factors have caused some hesitation, although the firm's history of clean loss and the potential to manage NPAs with minimal loss have prevented more significant worries.
Despite these challenges, DA Davidson sees potential for improvement in the near future. Both the net interest margin (NIM) and expense results have been underwhelming, yet there is a possibility for these aspects to improve in the upcoming quarters. Based on these considerations, DA Davidson has also lowered its earnings per share (EPS) forecast for Alerus Financial.
In the statement provided, the analyst acknowledged the company's growth dynamics and the appealing diversity of its revenue streams. These positive attributes are recognized, even amidst the recent financial turbulence that Alerus Financial has experienced. The firm expresses a desire for these strengths to become more evident, surpassing the current financial uncertainties.
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