ACNB Corp. price target raised to $49 from $43 at Piper Sandler

Piper Sandler raised the firm’s price target on ACNB Corp. to $49 from $43 and keeps a Neutral rating on the shares after the company announced that it had completed a restructuring of 12% of its AFS securities portfolio. The company sold $51.1M of agency debt that carried a 0.99% yield along with a weighted average remaining life of 2.6 years. Net proceeds of $46.1M were used to purchase $31.9M of agency multi-family debt and $14.2M of investment-grade BHC corporate debt. Combined, the AFS securities purchased carry an average yield of 5.01% and a longer weighted average remaining life at 4.9 years. The loss taken equates to 10% of full-year earnings. Piper views this trade as an effective use of capital given the earnings step-up and the reasonable period to recover the loss.