DA Davidson adjusted its price forecast for Equity Bancshares (NYSE:EQBK) to $52.00 from the prior $50.00, reaffirming a Neutral stance on the stock. This updated target remains within the brokerage's analyst range of $49 to $57, while the stock traded recently at $47.34, close to its one-year high of $50.07. InvestingPro valuations suggest that the current share price may be somewhat inflated relative to its estimated fair value.
In the fourth quarter of 2025, Equity Bancshares delivered core earnings per share of $1.21, falling short of DA Davidson's estimate of $1.35 but surpassing the broader market consensus of $1.13. The stock's price-to-earnings ratio stood at 48.12, characterizing it as trading at a substantial earnings multiple. Analysts are projecting earnings per share of $4.00 for the full fiscal year 2025.
The anticipated closing of the Frontier acquisition by Equity Bancshares has been postponed to January 1, 2026. According to bank management, this transaction is expected to reduce margins but will enhance net interest income over the long term.
During the quarter, Equity Bancshares reported maintaining a relatively stable net interest margin despite facing sizeable loan payoffs, which limited overall loan growth. The bank is positioning for a return to normal loan activity in 2026, which should support solid expansion.
Additional notable developments included improvements in credit quality and an active share buyback initiative, both viewed positively by DA Davidson.
In a separate report, the company surpassed earnings expectations in the fourth quarter with an EPS of $1.15 versus the forecasted $0.88, representing a 30.68% surprise. However, revenue fell slightly short at $73.03 million, compared to the anticipated $75.03 million. In response to these results, Keefe, Bruyette & Woods elevated their price target to $49 and maintained a Market Perform rating, acknowledging robust earnings despite minor setbacks in pre-provision net revenue.
Meanwhile, a longtime director, Randee R. Koger, announced plans to retire following the 2026 Annual Meeting of Stockholders. Koger has served on the board since 2003 and holds roles on the Compensation Committee, continuing her service until retirement.
These recent financial and governance events illustrate the ongoing operational and strategic shifts at Equity Bancshares as it navigates acquisitions, credit management, and shareholder returns.