Earnings of Bar Harbor Bankshares (NYSE: NYSE:BHB) will likely decline this year on the back of margin compression. However, close-to-normal loan growth will likely lift earnings soon. Overall, I’m expecting the company to report earnings of $2.67 per share for 2024, down 10% year-over-year. Compared
Bar Harbor Bankshares: Upgrading To Buy, Earnings Likely To Recover Next Year
Summary
- The loan growth outlook is positive thanks to interest rate cuts, stability in housing prices, and New England’s consistently low unemployment rates.
- Interest rate cuts will likely pressurize the margin. I’ve reduced my margin estimate following the first half’s disappointing performance.
- The December 2025 target price suggests a small price upside. Further, BHB is offering an attractive dividend yield of 4.1%.
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