HNVR Stock Forecast & Price Target

Hanover Bancorp is projected to experience a robust rebound in loan growth, with revised estimates indicating increases of 4.6% and 5.1% for 2025 and 2026, respectively, primarily driven by enhancements in commercial and industrial (C&I) and commercial real estate (CRE) sectors. This positive outlook is further supported by expectations of a larger overall balance sheet in conjunction with lower net interest margin (NIM) estimates and reduced expenses, which suggest improved financial management. Additionally, the growing share of municipal deposits, now comprising approximately 33% of total deposits, reflects an expanding customer base and potential for increased capital stability.

Hanover Bancorp's projected return on assets (ROA) has been revised down to approximately 0.85% for 2026, a decrease from the previously estimated 0.94%, indicating a less favorable profitability outlook. Additionally, anticipated quarterly revenues are expected to decline to approximately $1.7 million to $1.8 million in the latter half of the year, largely due to ongoing weaknesses in the SBA gain on sale metrics. Furthermore, the company has adjusted its operating earnings per share (EPS) estimates for 2025 and 2026 down by 14% and 6% respectively, reflecting lower net interest margin (NIM) estimates and decreased fee income expectations.