Atlantic Union Bankshares (AUB) faces downside risk to consensus earnings estimates amid weaker loan-growth projections, faltering industry-wide demand, and an uncertain macro backdrop as the bank diversifies its portfolio toward the commercial and industrial segment, Morgan Stanley said in a Wednesday report.
The regional bank has a strong credit quality and total loan losses should outperform peers this year and in 2026, according to the brokerage.
While higher commercial loan paydowns are a tailwind for credit quality, the trend could oppose loan growth, the analysts noted, adding that fewer commercial real estate originations and risks from fiscal policy changes could further dampen the company's outlook.
The brokerage said it models a "48% end-of-period loan growth" in 2025 and a 3.84% net interest margin for Q4, considering the impact of the Sandy Spring acquisition.
Morgan Stanley said it initiated coverage of the stock with an equalweight rating and a price target of $32 per share.
Price: 23.88, Change: -0.41, Percent Change: -1.67
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。