Piper Jaffray Starts Heartland Financial (HTLF) at Overweight

Piper Jaffray initiates coverage on Heartland Financial (NASDAQ: HTLF) with a Overweight rating and a price target of $37.00.

Analyst Matthew Clark commented, "We initiate coverage on HTLF with an Overweight rating and a $37 target based on 12x our 2017 EPS estimate. We believe HTLF is well positioned to drive improved profitability metrics with the realization of cost saves from recent acquisitions and better mortgage banking returns. We also expect HTLF’s above-average and under-penetrated fee income contribution should become more valuable in a lower for longer interest rate environment. Multiple expansion should unfold as HTLF delivers on a relatively stable margin, midsingle digit organic loan growth and additional operating leverage from a platform that can support a bank larger than its current size. A disciplined M&A approach and attractive platform should also help Heartland supplement its organic growth potential, digest the $10B in asset headwinds, and leverage its current infrastructure."

For an analyst ratings summary and ratings history on Heartland Financial click here. For more ratings news on Heartland Financial click here.

Shares of Heartland Financial closed at $31.71 yesterday.

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