Horizon Bancorp: Reducing The Earnings Estimate But Stock Is Still Attractively Valued

Nov. 09, 2022 1:28 AM ETHorizon Bancorp, Inc. (HBNC)
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Sheen Bay Research
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Summary

  • Loan growth will slow down due to slimmer pipelines, high-interest rates, and network reduction.
  • Due to an increase in the deposit beta, the margin will likely contract in the last quarter of 2022.
  • The December 2023 target price suggests a high upside from the current market price. Further, Horizon Bancorp is offering a good dividend yield.

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DNY59

The earnings of Horizon Bancorp, Inc. (NASDAQ:HBNC) will most probably continue to grow through the end of 2023 mostly on the back of moderate loan growth. Meanwhile, the net interest margin will likely face some pressure in the fourth quarter

Chart
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Net INterest Margin History Horizon bancorp

3Q 2022 Earnings Presentation

This article was written by

Sheen Bay Research profile picture
2.97K Followers
Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Disclaimer: This article is not financial advice. Investors are expected to consider their investment objectives and constraints before investing in the stock(s) mentioned in the article.

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