ipopba Raymond James analyst Steve Moss resumed coverage of Dime Community Bancshares (NASDAQ:DCOM) on Wednesday with an Outperform rating, reflecting its "attractive valuation and strong credit profile." That's tempered by Moss's below consensus EPS estimates as he expects deposit betas will accelerate for the bank and the industry in general. "DCOM is a well-run bank with a conservative credit culture tht we expect will continue to grow and sustain solid profitability as management builds an attractive NY franchise," the analyst wrote in a note to clients. Dime Community's (DCOM) net interest margin is likely to peak near term as Federal Reserve rate hikes are expected to slow in 2023, accelerating deposit betas, Moss said.
He models a 3.44% NIM for Q4 2022 and 3.30% for 2023 as funding costs increase. Raymond James's core EPS estimates for DCOM are $3.79 for 2022 (vs. $3.75 consensus), $3.75 for 2023 ($4.03 consensus) and $3.60 for 2024 ($4.29 consensus).
The Outperform rating is more bullish than the SA Quant rating of Hold and aligns with the average Wall Street rating of Buy. For a look at Dime Community's (DCOM) financial statements, click on the Financials tab.