SMBC Stock Forecast & Price Target

Southern Missouri Bancorp has demonstrated robust financial performance, reflected in a 4% growth in Tangible Book Value (TBV) and a 30 basis point increase in Tangible Common Equity (TCE) quarter-over-quarter, reaching $43.16 and 9.82%, respectively, driven by strong profitability evidenced by a Return on Assets (ROA) of 1.23% and a Return on Tangible Common Equity (ROTCE) of 12.9%. The company's improving efficiency ratio forecast, expected to reach 49% by FY4Q27, is supported by anticipated growth in Net Interest Income (NII) due to the upward repricing of fixed-rate loans and decreasing funding costs. Furthermore, projections indicate that TCE could increase to 10.3% by FY4Q26 and 11.3% by FY4Q27, bolstered by continued growth in loans and deposits along with favorable net interest margin dynamics.

Southern Missouri Bancorp has reported operating expenses of $25.1 million, which is 4% below expectations but indicates overall cost management challenges moving forward. The forecast suggests a decline in financial performance, with anticipated decreases in loan and core deposit growth, leading to potential credit quality deterioration and heightened operating expenses. Additionally, various macroeconomic factors present risks to the company's ability to achieve its financial targets, further contributing to a cautious outlook for the stock.