DA Davidson Lowers National Bank Holdings Target Due to Loan Losses
National Bank Holdings Corporation faces a reduced price target from DA Davidson, which lowered its projection to $43 from $45 while maintaining a Buy rating. The adjustment follows $46.8 million in loan charge-offs tied to commercial credits in franchise and healthcare sectors, pushing projected third-quarter earnings below Wall Street consensus.
Loan Charge-Offs Lower DA Davidson Earnings Estimates
DA Davidson anticipates third-quarter 2026 earnings per share between $0.72 and $0.76, falling short of the consensus market expectation of $0.84 and the firm’s prior estimate of $0.89. The reduction stems directly from approximately $46.8 million in loan charge-offs for impaired commercial loans, heavily concentrated in franchise and healthcare portfolios.
Despite these credit losses, National Bank Holdings shares trade at $37.89, sitting below the newly revised $43 price target. InvestingPro analysis indicates the company remains undervalued at current levels, noting a diluted EPS of $2.36 over the trailing twelve months alongside a price-to-earnings ratio of 16.11.
Stephens Lowers Price Target as Management Targets Profit
Stephens also adjusted its outlook for National Bank Holdings, lowering its price target from $49 to $46 while maintaining an Overweight rating. That revision followed an operational EPS of $0.79 for the second quarter, which missed both Stephens’ and consensus estimates.
DA Davidson expressed caution regarding franchise loans as a potential point of ongoing pressure, though the firm views the broader credit environment as stable. Management reiterated its confidence in achieving a $1 per share profit in the fourth quarter of 2026.
National Bank Holdings has increased its dividend for 10 years and currently yields a 3.36% dividend return. Additional evaluation metrics and portfolio strategies remain accessible through institutional research platforms covering the New York Stock Exchange-listed financial services provider.