NBHC Stock Forecast & Price Target

National Bank Holdings is poised for success as their NPA and NCO numbers are likely to improve in the near future, NIM is above peers and expected to stay that way with strong loan and deposit pricing, and their recent acquisition of Vista Bank will bring about strong growth opportunities in affluent markets as well as potential cost savings. This, along with their strong capital position and potential for organic growth, makes them a buy with a price target of $48, reflecting their above average NIM profile and potential for ongoing profitability improvement.

National Bank Holdings is facing negative pressure on its stock due to a potential decrease in net interest income, as evidenced by the 26.2% increase in LQ NII, $1.9M below expectations. Additionally, the historically elevated expense base tied to the build out of 2UniFi, coupled with a higher than peer NIE-to-avg assets ratio, indicates that NBHC may not be efficiently managing its expenses. While a possible partnership for 2UniFi may alleviate some expense burden, it remains to be seen if it will have a significant positive impact on NBHC's EPS.