Farmers & Merchants Bancorp

FMAO · NASDAQ

$35.55+$0.51 (+1.46%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $35.04

FMAO analyst rating

HoldConsensus of 1 analyst over the last 12 months. 0% rate it a buy.

Strong buy0
Buy0
Hold1
Underperform0
Sell0

12-month price target · 5 analysts

Average $34.17 (−3.9% downside)

Low: $28.78
Now: $35.55
High: $37.80

Upgrades and downgrades

The latest rating actions, newest first

FMAO analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Piper Sandler	Jul 29, 2026	Maintains	Neutral	$32.00 → $36.00	64%
Piper Sandler	Jun 25, 2026	Maintains	Neutral	$28.50 → $32.00	64%
Piper Sandler	Apr 27, 2026	Maintains	Neutral	$28.00 → $28.50	64%
Piper Sandler	Apr 2, 2026	Maintains	Neutral	$31.00 → $28.00	64%

The case for and against

Updated Nov 30, 2024

Bull case

Farmers & Merchants Bancorp Inc has demonstrated solid financial performance, with tangible book value per share increasing at a 10% annualized pace to $16.79 and a stable core net interest margin of 2.52%, indicating effective management of interest income. The company's ability to maintain a dividend payout ratio around 50%, despite revenue pressures, reflects robust earnings consistency, while end-of-period loans grew at a 3% annualized rate, showcasing continued lending growth. Furthermore, upward adjustments to earnings per share estimates for both 2024 and 2025 suggest a positive trajectory for the bank's financial health.

Bear case

Farmers & Merchants Bancorp Inc has faced significant challenges in its net interest margin (NIM), which has declined considerably from a peak of approximately 3.50% in mid-2022 to a more constrained level due to a competitive funding environment and a challenging yield curve. The company's reliance on diversified lending categories has not offset a downturn in asset quality, as indicated by a reduction in the bank's total capital leverage ratio to 8.02%, suggesting concerns over its ability to maintain adequate capital levels in a slowing growth environment. Furthermore, the expectation for 2024 to be a year of intentionally slower growth adds to the uncertainty, as it hinges on improvements in profitability and new business development amid ongoing pressures affecting overall bank stock valuations.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.