Assessing Bank of N.T. Butterfield & Son (NYSE:NTB)’s Valuation After Its Recent Multi‑Month Share Price Rally
Bank of N.T. Butterfield & Son (NYSE:NTB) has quietly outpaced many regional peers over the past year, and that steady climb has investors asking whether the latest pullback is a buying window.
See our latest analysis for Bank of N.T. Butterfield & Son.
Recent trading has been choppy, but the latest dip comes after a strong multi month run. An 18.96% 90 day share price return has fed into a 41.51% one year total shareholder return, suggesting momentum is cooling rather than collapsing as investors reassess growth and risk.
If NTB's run has you rethinking your financials exposure, this could be a good moment to scout other established names among healthcare stocks for diversification ideas.
On headline metrics, NTB still trades at a modest discount to analyst targets despite a powerful multi year rerating. This raises the central question: is there meaningful value left here, or are markets already pricing in future growth?
Most Popular Narrative Narrative: 3.5% Undervalued
With the narrative fair value sitting just above NTB's recent close, the story hinges on how durable its fee based growth really is.
Strategic M&A focus, especially in fee generating trust and wealth businesses, is set to enhance revenue diversification and increase fee based income, leading to more stable long term earnings and reduced reliance on net interest margins.
Want to see the full playbook behind this valuation? The narrative quietly rewires revenue mix, margins, and future earnings power in ways the headline numbers miss.
Result: Fair Value of $51.5 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this upside depends on Butterfield containing deposit volatility, as well as navigating margin pressure from lower rates and higher compliance and operating costs.
Find out about the key risks to this Bank of N.T. Butterfield & Son narrative.
Build Your Own Bank of N.T. Butterfield & Son Narrative
If you would rather interrogate the numbers yourself or challenge this view with your own angle, you can build a fresh narrative in minutes: Do it your way.
A great starting point for your Bank of N.T. Butterfield & Son research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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