ConnectOne Bancorp Shares Are Rarely This Cheap, Analyst Upgrades Stock And Price Forecast

Core Viewpoint - ConnectOne Bancorp, Inc. (CNOB) shares are experiencing an upward trend following an upgrade from Keefe, Bruyette & Woods analyst Tim Switzer, who raised the stock rating from Market Perform to Outperform and increased the price target from $31 to$32 [1][2]. Group 1: Stock Performance and Valuation - CNOB shares are currently trading at a significant discount compared to both industry peers and historical medians, despite the company's key metrics ranking in the top quartile among SMID-cap banks [2]. - As of the latest check, CNOB shares have risen by 3.41%, reaching a price of $24.54 [4]. Group 2: Growth Catalysts - Key positive factors for CNOB include the successful merger with The First of Long Island Corporation (FLIC), organic net interest margin (NIM) expansion, alleviation of commercial real estate (CRE) credit concerns, and potential benefits from further Federal Reserve rate cuts [3]. - The company is projected to achieve compound annual growth rates (CAGRs) of +32% for PPNR/share and +33% for EPS from 2024 to 2026, placing it in the top decile among peers during this period [4]. Group 3: Management Insights - During a recent meeting at KBW's Financial Services Conference, CNOB's management reported that the initial integration efforts for the FLIC merger are progressing smoothly, with confidence in meeting or exceeding all initial targets [3].