Nicolet Bankshares (NIC) Maintains Buy Rating on Strong Q1 Performance and Accretive Acquisition Strategy

Maxim Group analyst Michael Diana reiterated a Buy rating on Nicolet Bankshares (NIC – Research Report) yesterday and set a price target of $95.00.

Michael Diana has given his Buy rating due to a combination of factors including Nicolet Bankshares’s (NIC) recent financial performance and its strong history of accretive acquisitions. In his analysis, Diana highlights that NIC reported a first-quarter core earnings per share (EPS) of $1.72, outperforming both the consensus estimate and his own projection. This favorable result was attributed to reduced expenses and lower credit loss provisioning, supported by the company’s robust credit quality. With a stable net interest margin (NIM) and an expectation of modest loan growth, Diana anticipates a wider NIM for the bank moving forward. Additionally, he maintains a positive outlook for the company’s 2024 EPS estimate and sets a price target of $95, reflective of NIC’s premium valuation justified by its strong acquisition track record.

Moreover, Diana emphasizes NIC’s strategic and successful acquisitions since 2016, which have significantly expanded the bank’s assets and geographic reach. These acquisitions have not only been accretive but have also positioned NIC as a leading independent bank in demographically favorable areas. Looking ahead, Diana expects the bank to continue its acquisition strategy, enhancing its competitive edge. Based on these considerations, along with the expectation of stock price appreciation and a solid dividend yield, Diana reiterates a Buy rating, forecasting a significant total return over the next year.

According to TipRanks, Diana is a 5-star analyst with an average return of 13.6% and a 52.71% success rate. Diana covers the Financial sector, focusing on stocks such as Customers Bancorp, Cullen/Frost Bankers, and First Savings Financial Group.

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Nicolet Bankshares (NIC) Company Description:

Nicolet Bankshares, Inc. is a holding company, which engages in the provision of commercial and consumer banking services through its subsidiary, Nicolet Bank. It offers commercial and personal checking accounts, interest-bearing checking accounts; savings accounts; money market accounts; various types of certificates of deposit; and individual retirement accounts. It also provides commercial, construction, real estate, home equity, and consumer loans; as well as trust, investment management, and brokerage services. The company was founded by Robert Bruc Atwell and Michael E. Daniels on April 5, 2000 and is headquartered in Green Bay, WI.