West Bancorporation: Piper Sandler assumes Neutral, PT $21.5.

West Bancorporation: Piper Sandler assumes Neutral, PT $21.5.

Piper Sandler has initiated coverage on West Bancorporation, Inc. (NASDAQ:WTBA) with a Neutral rating and a price target of $21.50. The bank, headquartered in West Des Moines, Iowa, operates across Des Moines, Iowa City-Coralville, and targeted Minnesota metropolitan statistical areas. Piper Sandler describes WTBA as a "high-quality, commercially-focused and holistic community bank" with a strong deposit franchise and attractive positioning in relatively higher growth Midwest markets.

The Neutral rating reflects limited visibility of catalysts to drive WTBA's improving profitability profile closer to peers. Piper Sandler estimates a return on assets (ROA) of 0.6% in 2024, compared to 0.8%-0.9% in 2025/26. The firm's price target represents a valuation of 10.0x their 2026 estimated earnings per share, in line with peer valuations of 9.9x.

West Bancorporation reported its first-quarter 2025 earnings, exceeding analyst forecasts. The company achieved an earnings per share (EPS) of $0.46, surpassing the anticipated $0.40, and revenue reached $23.1 million, above the expected $21.7 million. Despite these positive financial results, the stock experienced a decline, reflecting broader market concerns and specific challenges within the company. The company's net income increased to $7.8 million from $5.8 million a year earlier, and net interest income has grown continuously over the past five quarters. The net interest margin also increased by 30 basis points from the previous quarter.

West Bancorporation remains optimistic about its loan and deposit pipeline, though it remains cautious due to economic uncertainties. The company's executives emphasized the importance of relationship banking and maintaining strong credit quality.

[1] https://ng.investing.com/news/analyst-ratings/west-bancorporation-stock-initiated-at-neutral-by-piper-sandler-with-2150-target-93CH-2007143