Piper Sandler on Tuesday increased its price target for Byline Bancorp (NYSE:BY) to $37.00 from $35.00 and left its Overweight rating in place. The new target is aligned with InvestingPros Fair Value assessment, and the research note indicates that the stock currently trading at $31.14 could be undervalued even as it trades close to its 52-week high of $32.14.
The firms decision follows Bylines robust fourth-quarter performance. Management delivered a 9% pre-provision net revenue upside, driven by stronger core fee income and higher net interest income accompanied by net interest margin expansion - results that ran contrary to prior expectations for margin compression. That quarter contributed to a 7.93% increase in revenue over the trailing twelve months.
Piper Sandler cited two primary drivers underpinning its more constructive view: prospects for continued net interest margin expansion and stronger organic balance sheet growth. The banks ability to expand margin while also winning commercial market share across the Chicago metropolitan area was highlighted as a reason for increased confidence in future earnings power.
Another factor the research team emphasized was Bylines growing excess capital position. That capital buffer, Piper Sandler noted, gives management flexibility to return capital to shareholders or to pursue merger and acquisition opportunities as the bank moves toward organically surpassing $10 billion in assets this year.
Reflecting the firmer outlook for net interest income, Piper Sandler raised its earnings-per-share estimates for 2026 and 2027 by roughly 5% to 7%, setting those forecasts at $3.10 and $3.20 per share, respectively. The firms new $37.00 price target is based on a multiple of 11.5 times estimated 2027 earnings.
Bylines reported fourth-quarter 2025 results also beat consensus analyst expectations. The company posted earnings per share of $0.76 versus a forecast of $0.72, a surprise of 5.56%. Revenue came in at $117 million compared with a projected $112.31 million, a 4.18% upside. Despite the quarterly upside, the stock showed relative stability in premarket trading.
The note observed that there have been no recent public reports of mergers or acquisitions involving Byline Bancorp, and that analysts have not recently moved to upgrade or downgrade the companys stock, effectively leaving prior assessments in place. These items frame the current market context for investors assessing Bylines financial trajectory and strategic optionality.
Context and implications
For investors and market participants, the firms revision to both price target and earnings forecasts underscores the significance of margin dynamics and fee-income resilience for regional banks. Bylines combination of margin improvement, revenue growth and a strengthening capital position are central to Piper Sandlers more bullish valuation approach.