BofA Securities has launched coverage of Piper Sandler (NYSE:PIPR) with an Underperform recommendation and a $385.00 price target. At the time of that initiation, the stock was trading at $360.35, carrying a market capitalization of $6.37 billion and a trailing price-to-earnings ratio of 26.99.
In its analysis, BofA expressed concern that Piper Sandler lacks the runway for outsized earnings-per-share expansion relative to peer firms that participate in larger, Big Tech-driven transactions. That said, InvestingPro data shows the company’s PEG ratio stands at 0.63, which indicates the stock may trade at a modest P/E relative to near-term earnings growth projections despite the firm’s reservations.
BofA acknowledged that Piper Sandler is positioned to gain from any acceleration in merger-and-acquisition activity - notably in U.S. bank consolidation - but emphasized that the firm’s franchise is concentrated on smaller market capitalizations, particularly within the Financials and Healthcare sectors.
The research note highlights valuation and growth comparisons. Piper Sandler is priced at 21 times its 2026 estimated earnings, roughly in line with peers, yet it shows below-average EPS growth expectations: 14% for fiscal 2026 and 20% for fiscal 2027 versus peer averages of 30% and 23%, respectively. BofA’s own EPS forecasts of $17.50 for fiscal 2026 and $21.01 for fiscal 2027 sit below consensus estimates of $18.39 and $22.29. Based on this view, BofA concluded that there are more attractive risk/reward opportunities elsewhere within the investment banking coverage universe.
Those downside-leaning projections arrive amid several favorable operational developments for Piper Sandler. The company posted robust third-quarter 2025 results, reporting adjusted earnings per share of $3.82 versus a $3.17 forecast and revenues of $479 million compared with an expected $422.8 million.
Meanwhile, Goldman Sachs has taken a different stance, upgrading Piper Sandler from Neutral to Buy and projecting an above-average revenue compound annual growth rate of approximately 12.5% from 2024 through 2027.
Strategic moves by Piper Sandler include the completion of its acquisition of Abu Dhabi-based MENA Growth Partners, creating an investment banking hub in the GCC region. The firm also announced internal leadership changes: Michael Piper will assume the role of head of fixed income effective in the first quarter of 2026, and Dan Bass has been hired as managing director in the financial services investment banking group to focus on mergers and acquisitions in Texas.
These mixed signals - a conservative initiation from BofA versus strong quarterly results and a Goldman upgrade - leave investors weighing valuation, growth expectations, and franchise positioning, particularly across Financials and Healthcare subsectors and among middle-market M&A opportunities.