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President Donald Trump’s efforts to stoke economic growth and stimulate reshoring could be a boon for UMB Financial , according to Bank of America. BofA initiated the stock with a buy rating and a $105 per share price target. BofA’s forecast implies more than 16% upside from Tuesday’s close. “The bank has shown above average credit quality (near-term defensibility) while President Trump’s pro-growth/re-shoring agenda supports the high-growth profile (longer-term opportunity),” analyst Brandon Berman wrote in a Wednesday note. Trump has touted tariffs as a way to bring manufacturing jobs back to the U.S., saying they will speed up reshoring efforts from companies looking to avoid the duties. The effort is seen as an uphill battle given that the majority of manufacturing is done outside of the U.S., and bringing the sector back at a large scale will likely take years. However, Berman’s long-term view of Trump’s tariff plans underpins part of his optimism on the stock. “The combination of top quartile credit performance, interest rate defensibility (via fee income generation), and improving liquidity profile suggests to us shares should trade closer to 10x, or 21% premium,” the analyst said. “Should sentiment about the economy improve, growth in the US could act as a tailwind for continued fee income growth.” UMBF YTD mountain UMB Financial stock in 2025. The analyst also highlighted UMB’s “prudent risk management and above average growth,” as well as the stock’s current discount relative to peers. Specifically, Berman estimated that UMB stock trades at a roughly 9% discount to the broader banking segment. The bank trades at 1.28 times its book value, per FactSet. Bank stocks initially soared after Trump’s election victory on the prospects of deregulation and greater deal-making. The Invesco KBW Bank ETF (KBWB) popped more than 15% between Nov. 5 and early February. However, the exchange-traded fund is now more than 9% lower since the president was elected. UMB shares have also struggled year to date, losing more than 19%. The stock was flat on Wednesday after the upgrade, while the broader market struggled. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
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