Wells Fargo Lifts BankUnited (BKU) Target Ahead of Expected 2026 Earnings Recovery

BankUnited, Inc. (NYSE:BKU) is included among the 13 Best January Dividend Stocks to Invest in.

On January 5, Wells Fargo raised its price target on BankUnited, Inc. (NYSE:BKU) to $50 from $42 and kept an Overweight rating on the shares. The firm said regional banks are positioned to narrow their valuation gap with the largest banks in 2026. Q2 is seen as the next likely earnings catalyst. In the meantime, Wells expects a brief EPS air pocket through Q1 2026, driven by rate cuts, slower loan growth, and normal expense seasonality.

In the most recent quarter, net income increased to $71.9 million, or $0.95 per share. Net interest margin expanded to a clean 3.00%, up from 2.93% in the prior quarter. For the first nine months of the year, earnings reached $199.1 million, marking a 22% increase year over year. Deposits were largely flat during the period, while funding costs moved lower.

That mix fits well with a portfolio approach focused on traditional banks. The emphasis is on scale, steady balance sheets, and improving profitability rather than speculative growth stories. BankUnited, Inc. (NYSE:BKU) also stands out in capital strength. It ended the quarter with a 12.5% CET1 ratio, and tangible book value rose 8% year over year to $39.27 per share.

BankUnited, Inc. (NYSE:BKU) operates as a regional banking institution with a strong presence in Florida and the New York metropolitan area. The company relies on a diversified loan portfolio and a solid deposit base to support stable earnings and maintain a competitive position among regional peers.

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