Dime Community Bancshares hits over one-year high after Raymond James upgrades to 'strong buy'

Dime Commercial Bancshares

17/09/2024 16:55

(Updates)
    ** Shares of regional lender Dime Community Bancshares
 DCOM.O  jump as much as 12.3% hitting their highest in more
than a year; last up 12.1% at $29.15
    ** Raymond James upgrades its rating on DCOM to "strong buy"
from "outperform"; raises PT to $35 from $29, which represents a
34.6% upside to stock's last close
    ** Brokerage says deposit growth momentum and expectations
for rate cuts by the U.S. Federal Reserve should drive a
material improvement in DCOM's earnings next year
    ** Brokerage adds that lower rates support a more favorable
outlook for DCOM's more conservatively underwritten commercial
real estate and multi-family loans
    ** Raymond James recently spoke with DCOM management, which
indicated that deposit growth trends from recent hires remain
intact; brokerage says that should support sustained net
interest margin expansion
    ** Three of five brokerages rate the stock "buy" or higher
and two "hold"; their median PT is $28 - LSEG
    ** As of last close, DCOM shares down 3.4% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))