Piper Sandler has increased its 12-month price target for Amerant Bancorp Inc to $25.00 from $22.00 while maintaining an Overweight rating on the shares. The new target represents roughly 17% upside from the bank's recent market price of $21.32 and is set against data indicating the stock is trading below its Fair Value.
The brokerage pointed to Amerant's strategic emphasis on returning to stability in the wake of its credit review and the ongoing roll-out of an operational efficiency plan. These moves were cited as foundational to the firms view that the bank is moving toward a steadier footing.
On valuation and scale, Amerant carries a market capitalization of $864.72 million and a price-to-book ratio of 0.92, meaning the shares trade below the companys book value despite signs of improvement across certain metrics.
Piper Sandler acknowledged a recent spike in non-performing loans and several non-GAAP charges that affected fourth-quarter 2025 results. Nevertheless, the firm pointed to encouraging early indicators, noting that more than 85% of Amerants commercial loan book has now undergone third-party review. In Piper Sandlers assessment, although non-performing loans and net charge-offs remain elevated, they are not expected to produce quarterly net losses for the bank.
The analyst also highlighted an improvement in tangible book value per share, which rose nearly 10% in 2025. In its modeling, Piper Sandler projects high-single-digit growth in tangible book value per share for both 2026 and 2027.
Amerants most recent public results for the fourth quarter of 2025 showed a mixed picture. Earnings per share came in at $0.07, well below the $0.36 consensus estimate and constituting an 80.56% negative surprise versus expectations. By contrast, revenue for the quarter totaled $112.17 million, ahead of the $107.46 million forecast and representing a 4.38% positive surprise.
These outcomes leave investors with a bifurcated view: top-line strength in the quarter offset by a material shortfall on EPS. The company did not report any updates regarding mergers or acquisitions, and there have been no recent analyst upgrades or downgrades noted for the stock.
Overall, Piper Sandlers updated valuation and continued Overweight stance reflect confidence in the banks path back to stability and capital recovery, tempered by the ongoing credit-related pressures that influenced recent quarterly performance.
Sectors impacted - Regional banking, financial services, and equity markets for mid-cap banks are the areas most directly affected by the developments detailed above.