Bar Harbor Bankshares: Upgrading To Buy, Earnings Likely To Recover Next Year

Oct. 10, 2024 10:12 PM ETBar Harbor Bankshares (BHB) Stock
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Sheen Bay Research
3.27K Followers
(10min)

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%.

Seafront in Bar Harbour with cruise ship in the background

Ceri Breeze

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

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Sheen Bay Research profile picture
3.27K Followers
Around 10 years of experience covering Banks and Macroeconomics. Passionate about discovering lucrative investments and generating alpha.

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