Piper Sandler has raised its price target for South Plains Financial Inc. (NASDAQ:SPFI) to $45.00 from $41.00, while maintaining a Neutral view on the stock. The revised target sits between the analyst high of $47 and low of $44; at the time of the update SPFI was trading at $41.32.
The research firm pointed to the bank's accelerated growth and its stronger-than-expected fourth-quarter 2025 results as central reasons for the increase in the target. Citing InvestingPro data, Piper Sandler noted that South Plains has recorded 11.6% revenue growth over the last twelve months, considerably above its five-year average revenue growth of 4%.
In its assessment, Piper Sandler emphasized that the company delivered a solid top-line and a pre-provision net revenue (PPNR) beat. The firm singled out loan growth as a notable development, describing it as "the only thing missing from the story over the recent past," and viewing its emergence as a positive signal for the bank's franchise.
Management is guiding to mid- to high-single digit loan growth for 2026. Piper Sandler regards that outlook favorably, particularly when considered in conjunction with South Plains Financial's pending Bank of Houston acquisition.
The research note suggested that the fourth-quarter 2025 performance may "change the conversation around growth" and could point to "better trends to come" for the Texas-based institution.
Separately, South Plains Financial reported its fourth-quarter 2025 results showing earnings per share of $0.90, which beat the consensus expectation of $0.88. Revenue for the quarter was $53.88 million, slightly below the anticipated $54.11 million. While revenue missed the projection by a small margin, the EPS beat reflects a favorable outcome on profitability for the period.
Recent communications contained no reports of mergers or acquisitions involving South Plains Financial in the latest updates. Likewise, there were no analyst upgrades or downgrades reported for the company in the information provided. Investors are expected to monitor upcoming earnings reports and other disclosures to track the company's financial trajectory.
Contextual notes:
- The new Piper Sandler target of $45.00 represents an upward revision from the prior $41.00 target.
- Revenue growth of 11.6% over the last twelve months compares to a five-year average of 4%, per InvestingPro data cited by Piper Sandler.
- Quarterly results included an EPS beat and a modest revenue shortfall; loan growth and management guidance for 2026 were emphasized by the research firm.