Stephens & Co. Lowers Price Target for Civista Bancshares to $24.00

Stephens & Co. lowers Civista Bancshares' (CIVB) price target from $27 to $24, representing an 11% decrease. The firm maintains its "Equal-Weight" rating, suggesting the stock will perform in line with the market. Civista Bancshares' average target price is $25.17 with an average brokerage recommendation of 2.2, indicating an "Outperform" status. The estimated GF Value for Civista Bancshares in one year is $21.18, suggesting a 5.64% upside from the current price.

Stephens & Co. has revised its price target for Civista Bancshares (NASDAQ:CIVB) from $27 to $24, representing an 11% decrease. The investment firm has maintained its "Equal-Weight" rating, suggesting the stock will perform in line with the broader market. The average target price for Civista Bancshares is $25.17, with an average brokerage recommendation of 2.2, indicating an "Outperform" status. The estimated GF Value for Civista Bancshares in one year is $21.18, suggesting a 5.64% upside from the current price [1].

The adjustment follows Civista Bancshares' second-quarter 2025 operating earnings of $0.67 per share, which exceeded the company's previously announced range of $0.62-$0.67. Despite this performance, the bank's pre-tax, pre-provision net revenue missed consensus expectations by approximately 2%, primarily due to softer leasing revenue affecting fee income [1].

Civista Bancshares reported loan growth of approximately 6% on an annualized basis during the quarter, while a decrease in deposits was offset by Federal Home Loan Bank advances. Credit quality showed improvement, with the allowance for credit losses now standing at 1.28%. The research firm highlighted Civista's acquisition of Farmers Savings for $70 million and a common equity raise as positive developments for the bank's balance sheet composition [1].

Stephens noted that while these strategic moves strengthen the balance sheet, the common equity raise is likely to pressure earnings over the next several quarters, contributing to the lowered price target. Civista Bancshares' earnings per share matched expectations at $0.71 in the second quarter of 2025, but revenue fell short, recording $41.4 million compared to the anticipated $42.88 million. Despite the revenue miss, Civista Bancshares demonstrated strong net income growth, which seemed to bolster market sentiment [1].

The company also announced updates to its corporate bylaws to align with changes in Ohio's General Corporation Law. These amendments include provisions allowing the board to set alternate dates for shareholder meetings and determine director compensation. These developments reflect Civista Bancshares' strategic initiatives to modernize its governance framework [1].

References:
[1] https://www.investing.com/news/analyst-ratings/stephens-lowers-civista-bancshares-stock-price-target-to-24-on-capital-raise-93CH-4157220