Live Oak's margins may be pressured by slower easing of deposit costs, brokerage says

Live Oak Bancshares

07/11/2024 12:58

** Raymond James says Live Oak Bancshares'  LOB.O  net
interest margin (NIM) may be pressured due to a slower easing of
deposit costs than brokerage had previously expected
    ** LOB's NIM - the difference in interest rates received on
loans and paid out on deposits - may trough sometime in the
first quarter of 2025, brokerage says
    ** Reduces operating earnings per share estimates for 2024,
2025 and 2026
    ** Also expects more headwinds in LOB's fee-income business,
maintains "market perform" rating
    ** One of four analysts rates the stock "buy", while the
rest "hold," their median PT is $46 - LSEG
    ** Stock up ~65% YTD

 (Reporting by Niket Nishant in Bengaluru)
 ((Niket.Nishant@thomsonreuters.com))