Raymond James has upgraded Renasant Corporation (RNST) from “Outperform” to “Strong Buy,” reiterating a $40 price target. This bullish shift reflects the company’s strong first-quarter earnings and the early, strategic completion of a key acquisition.
💹 Why the Upgrade Happened:
🔹 Renasant delivered Q1 2025 earnings of $0.66 per share, beating estimates and showcasing resilient operational strength despite a challenging macro environment.
🔹 The early close of its acquisition of The First Bancshares has already begun to add value, providing stronger loan marks and enhancing its market reach. The deal also gave a solid boost to Renasant’s CET1 capital ratio by 11%, increasing financial flexibility.
🔹 At a P/E ratio of just under 9x, the stock remains attractively valued compared to regional banking peers, making it a timely opportunity for investors.
💰 Dividend Fundamentals:
💵 Renasant pays a quarterly dividend of $0.22, totaling $0.88 annually. This represents a forward dividend yield of around 3.12%.
📊 With a conservative payout ratio of 26.91%, Renasant has significant capacity to maintain and potentially grow its dividend in the future.
📆 The company has upheld a reliable dividend track record for over 30 years, reflecting its dedication to rewarding shareholders even in shifting economic conditions.
📌 Bottom Line:
With stronger-than-expected earnings, a high-impact acquisition ahead of schedule, and a shareholder-friendly dividend profile, Renasant stands out as a compelling buy in the regional banking space.