Cantor Fitzgerald maintains Neutral on Home Bancshares stock

Cantor Fitzgerald maintains Neutral on Home Bancshares stock

Chipmakers weigh on stocks, oil edges higher Investing.com - Cantor Fitzgerald maintained a Neutral stock rating on Home Bancshares (NYSE:HOMB) with a $30.00 price target. The stock currently trades at a P/E ratio of 12.07, and InvestingPro analysis suggests the company is undervalued, with Fair Value estimates pointing to potential upside from current levels. The firm said Home Bancshares reported adjusted earnings per share of $0.64 and diluted earnings per share of $0.59 for the second quarter of 2026.

Cantor Fitzgerald estimated core earnings per share of $0.63, above its $0.62 estimate and above consensus non-GAAP earnings per share of $0.62. The firm described the second quarter 2026 performance as mixed. Positives included solid expense control, contained credit, a larger buyback than expected, and stronger fee income versus estimates and consensus.

Amortization expense came in lower than expected, which could benefit the expense trend going forward. The firm said it expects the strong fee result to continue. Credit trends remained strong, with Home Bancshares beating on provision.

Net charge-offs increased slightly but remained at a low level, and non-performing assets remained well contained with modest growth. The bank’s solid fundamentals are reflected in its 11% return on equity and consistent shareholder returns, having raised its dividend for 12 consecutive years according to InvestingPro data. In other recent news, Home BancShares reported a net income of $119.3 million, or $0.59 per diluted share, for the second quarter of 2026.

After excluding merger-related expenses from its acquisition of Mountain Commerce Bancorp, net income was $128.1 million, or $0.64 per diluted share. The company also declared a quarterly cash dividend of $0.21 per share, consistent with the previous quarter. Benchmark initiated coverage on Home BancShares with a Hold rating, highlighting strong operational metrics but limited potential for valuation growth.

Meanwhile, Keefe, Bruyette & Woods lowered its price target for the company to $30 from $32, citing challenges from lower net interest income and slower growth. At the company’s 2026 Annual Meeting, shareholders approved all fourteen nominated directors, executive compensation, and the selection of an independent auditor.