Bridgewater Bancshares assumed with an Overweight at Piper Sandler

Piper Sandler assumed coverage of Bridgewater Bancshares with an Overweight rating and $15.50 price target. While Bridgewater’s profitability metrics are expected to remain sub-optimal relative to its historical above average levels, the firm believes the company is well-positioned for forward price-to-earnings multiple expansion further above peers with its unique growth opportunities in the Twin Cities MSA that should result in above average core deposit gathering. Piper anticipates more favorable balance sheet optics aided by this superior core deposit growth outlook, coupled with its highly efficient, branch-lite structure, should drive less volatile and higher-quality earnings over various cycles.