This analyst just raised his price target on VersaBank

Roth Capital Markets analyst Craig Irwin raised his price target on VersaBank (VersaBank Stock Quote, Chart, News, Analysts, Financials NASDAQ:VBNK) to US$14.00 from US$13.00 while maintaining a “Neutral” rating following fiscal first-quarter results.

The new target is based on an 11x multiple applied to Irwin’s fiscal 2026 adjusted EPS estimate of $1.25, up from the prior 10x multiple.

VersaBank reported fiscal Q1 2026 net revenue of US$26.3-million and adjusted EPS of $0.27, broadly in line with expectations. Net interest margin came in at 2.25%, slightly below forecasts, reflecting excess liquidity used to support growth in the bank’s U.S. Structured Receivable Program (SRP).

Loans reached C$5.3-billion at quarter end, up 23% year-over-year, driven primarily by expansion of the U.S. SRP portfolio and continued consumer lending demand in Canada. The SRP program grew to US$472.0-million after more than US$200.0-million in fundings during the quarter, and management said it remains confident the platform can reach its US$1.0-billion funding target by the end of fiscal 2026.

In his March 5 sales analysis, Irwin noted that margins will likely remain range-bound through the year as liquidity is deployed to support SRP growth.

VersaBank also announced its first stablecoin custody customer through a partnership with Stablecorp to provide custodial services for QCAD, Canada’s first regulatory-compliant stablecoin. The bank expects to earn roughly 50 basis points on related deposits and plans to expand the program through additional partnerships.

Management also said it aims to complete the divestiture of its DRT Cyber business before the end of summer, a move expected to reduce annual operating expenses by roughly $10.0-million.

-30-