Piper Sandler has adjusted its valuation for Bank First National Corp. (NASDAQ:BFC), raising the firm's price target to $150.00 from $142.00 but leaving its stance on the stock at Neutral. The revised target reflects roughly 8% upside relative to the company's trading level of $138.81, with shares near their 52-week high of $142.12.
The brokerage cited what it called "another impressive quarter" as background for the lift. In the fourth quarter, Bank First reported a 1.7% return on assets and a 17% return on tangible common equity - metrics that Piper Sandler highlighted in justifying the target change. Independent data from InvestingPro notes a return on assets of 1.59% for the last twelve months, reinforcing the view of a strong profitability profile.
Operationally, the bank delivered a 6% pre-provision net revenue upside in the quarter. Piper Sandler attributes that beat mainly to stronger net interest income driven by net interest margin expansion, along with balanced growth on the balance sheet and disciplined control of operating expenses.
Reflecting those outlook changes, Piper Sandler raised its earnings per share projections for Bank First National to $9.95 for 2026 and $10.70 for 2027, up from prior forecasts of $9.75 and $10.45, respectively. The firm expects higher net interest income to be a key driver of those revised EPS estimates.
The new $150 price objective corresponds to a multiple of 14.0x Piper Sandler's 2027 earnings estimate. Piper Sandler notes that this multiple is a premium to the peer group multiple of 8.8x, a gap the firm says is justified by Bank First National's "far superior profitability outlook" and a projected return on assets of 1.8%-1.9% in 2026/27, combined with what the firm describes as a "more benign credit profile."
Separately, Bank First Corporation has completed its acquisition of Centre 1 Bancorp, Inc., the parent company of The First National Bank and Trust Company. That deal expands Bank First's physical footprint to 38 branch locations across Wisconsin and the Stateline area of Illinois. The combined organization will manage approximately $6 billion in assets following the merger.
As part of the integration of Centre 1 Bancorp, Bank First will incorporate the trust and wealth management team from First National Bank and Trust, broadening the company's service offerings. Piper Sandler and company statements portray the transaction as a material component of Bank First's growth strategy and a move that should strengthen its regional presence.
InvestingPro's Fair Value assessment, cited alongside Piper Sandler's update, suggests the shares are currently fairly valued. That assessment aligns with the Neutral rating despite the higher price target, indicating the firm sees upside limited relative to current market levels while acknowledging the bank's favorable operating metrics.
Summary and implications
- Piper Sandler increased its price target to $150 but retained a Neutral rating, implying limited near-term upside.
- Quarterly results and margin expansion supported upward revisions to 2026 and 2027 EPS forecasts.
- The completed acquisition of Centre 1 Bancorp expands branch count, assets under management, and adds trust and wealth capabilities.
Key metrics noted by Piper Sandler and InvestingPro
- Fourth-quarter return on assets: 1.7% (Piper Sandler cited).
- Return on tangible common equity in Q4: 17%.
- Last twelve months return on assets (InvestingPro): 1.59%.
- Pre-provision net revenue beat: +6%.
Strategic development
The integration of Centre 1 Bancorp brings Bank First to 38 branches and about $6 billion in combined assets, while adding trust and wealth management resources from the acquired bank. Piper Sandler frames these changes as consistent with Bank First's efforts to broaden its financial services portfolio and deepen its regional market position.
Bottom line
Piper Sandler's decision to raise its price target reflects improved earnings expectations tied to net interest income and margin strength, as well as continued franchise expansion through acquisition. The Neutral rating and InvestingPro's Fair Value view indicate the firm considers the stock reasonably priced at current levels despite the positive operational trends.