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New York-based M&T Bank Corporation (MTB) operates as a bank holding company, providing retail and commercial banking, trust, wealth management, and investment services. With a market cap of $27.9 billion, M&T Bank operates through Commercial Bank, Retail Bank, and Institutional Services and Wealth Management segments.
The banking major has outperformed the broader market over the past year. Over the past 52 weeks, MTB stock gained 34.1%, outpacing the S&P 500 Index’s ($SPX) 26.1% returns. In 2024, MTB is up 24.3% compared to SPX’s 17.2% gains on a YTD basis.
Zooming in further, MTB has lagged behind the US Regional Banks Ishares ETF’s (IAT) 36.4% returns over the past 52 weeks but outperformed the 14.7% gains on a YTD basis.
Shares of M&T Bank rose 1.7% after the release of its stronger-than-expected Q2 earnings on Jul. 18. Its quarterly revenue of $2.3 billion surpassed Wall Street’s estimates by 1.1%. Although the regional bank experienced an 11.5% annual decrease in revenues, its loans and leases, and deposits have experienced a steady growth to $134.6 billion and $163.5 billion, respectively. Moreover, its efficiency ratio of 48.9% in the year-ago quarter rose to 55.3%, making investors enthusiastic.
For the current fiscal year, ending in December, analysts expect M&T Bank’s EPS to decline 11.4% year over year to $14.24. The company’s earnings surprise history is mixed. It surpassed Wall Street’s consensus estimates in two of the past four quarters while missing on two other occasions. Its EPS for the last reported quarter surpassed the consensus estimates by 8.3% to $3.79.
Among the 21 analysts covering the MTB stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” and one “Strong Sell.”
This configuration is slightly more bullish than a month ago when eight analysts recommended a “Strong Buy” rating.
On Aug. 5, Morgan Stanley (MS) analyst Manan Gosalia maintained a “Strong Buy” rating with a price target of $220, which is also the Street-high target price, implying the stock could rally as much as 29.1%.
MTB’s mean price target of $182.30 represents a potential upside of 7% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
