Why The Bancorp Stock Popped Again Today
Key Points
It wasn't hard to be bullish, given the strong second-quarter results reported late last week.
The company is expecting double-digit growth on the bottom line.
In an impressive curtain call following last Friday's rally, The Bancorp (NASDAQ: TBBK) stock again landed well in positive territory on Monday. Bolstered by two post-earnings price target raises from analysts, shares of the banking services company closed the trading session almost 7% higher.
2 bulls get more bullish
Of the pair, the more substantial raise was made by Manuel Navas of Piper Sandler. He cranked his fair value assessment on The Bancorp to $86 per share from his previous $70, maintaining his overweight (i.e., buy) recommendation as he did so.
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That came on the heels of The Bancorp's second-quarter earnings release, which was published early last Friday. According to reports, Navas is encouraged by the company's guidance for double-digit earnings per share (EPS) growth both this year and next. He also feels that the significant share repurchases will continue to support the stock's price.
The other analyst to change his price target was Keefe, Bruyette & Woods' Timothy Switzer. He was more cautious, adding $2 per share to his for a new level of $79. He kept his equivalent of a buy recommendation on The Bancorp intact.
Guiding for success
It was the guidance that made The Bancorp stock such a star at the end of last week.
The company expects growth that exceeds the potential of many traditional banks, and it operates in a market where more financial and finance-adjacent businesses will want or need its banking-as-a-service (BaaS) offerings. I think the current bullishness among investors and analysts on its potential is entirely justified.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.