Evercore ISI Upgrades M&T Bank (MTB) to Outperform

Evercore ISI analyst John Pancari upgraded M&T Bank (NYSE: MTB) from In Line to Outperform with a price target of $210.00 (from $187.00).

The analyst comments "Upgrading MTB to Outperform from In Line as we expect gradually abating CRE credit concerns, improving fundamentals, and accelerating capital return to present incremental upside to the stock’s valuation. We acknowledge MTB has outperformed in recent months as soft landing macro came into focus, Fed cuts materialized, and CRE stress has remained manageable. We see further outperformance as a favorable inflection in MTB’s fundamentals could support a more constructive earnings outlook. We also believe MTB’s earnings could prove more resilient than expected helped by fixed asset repricing, funding flexibility, and EA upside. While CRE credit concerns persist, the pace of decline in rates bodes well for the ability to refinance, while also benefiting credit migration, and helping limit loss content. Furthermore, MTB has steadily bolstered credit reserves and no longer expects to materially shrink CRE loan balances. Lastly, share buybacks have resumed and we expect the pace to accelerate and support longer term upside to MTB’s ROTCE. While the stock has outperformed YTD, MTB trades in line with peers at 10.7x 2025 EPS and at 1.7x TBV despite a modestly above peer ROTCE outlook and more favorable earnings trajectory. MTB also still trades at a discount to its prepandemic P/E of 14x. As fundamentals improve, returns strengthen, and credit risk abates, we see incremental upside to the stock’s relative valuation."

For an analyst ratings summary and ratings history on M&T Bank click here. For more ratings news on M&T Bank click here.

Shares of M&T Bank closed at $172.72 yesterday.

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