Camden National Corporation (CAC) Boosts Earnings with Acquisition of Northway Financial, Keefe, Bruyette & Woods Affirms Market Perform Rating
Keefe, Bruyette & Woods reaffirmed a Market Perform rating on Camden National Corporation (NASDAQ:CAC) with a price target of $41.00, highlighting the recent acquisition of Northway Financial as a strategic move. The acquisition is projected to significantly boost Camden National's earnings, with expected accretion of 20% in 2025 and over 30% in 2026. Despite a 16% dilution to tangible book value at closing, the deal is seen positively by analysts.
The acquisition is expected to enhance Camden National's profitability, aiming for a return on assets exceeding 1% and a mid-50s efficiency ratio. With the balance sheet set to grow to around $7 billion, the bank can capitalize on Northway's deposit base. This move aligns with Camden National's growth strategy and could improve its financial performance in the coming years.
In addition to the acquisition, Camden National Corporation reported strong Q2 financials and an all-stock merger with Northway Financial. The merger, valued at $86.6 million, will create a banking entity with 74 branches across New Hampshire and Maine. Camden National's Q2 net income of $12 million demonstrates disciplined execution and strong asset quality.
Investors and analysts are closely following Camden National's financial health and performance metrics. With a Market Cap of approximately $541.44M and a P/E Ratio of 12.51, the company's valuation is in line with industry averages. The bank's consistent dividend payments for 28 years and dividend growth for 7 consecutive years provide a strong income stream for investors.
For a comprehensive analysis of Camden National's financial outlook and performance, investors can access additional insights on InvestingPro. Stay informed about the company's progress and potential impact on your investments.