Record Revenue, Rising Dividends—So Why Aren't Analysts Saying Buy?

Summary

Piper Sandler NYSE: PIPR posted its best first quarter ever on May 7, with 33% revenue growth and record investment banking. It was the 10th consecutive quarter of year-over-year growth. The company also raised its dividend. Yet Wall Street says Hold. This Minneapolis-based boutique investment bank is carrying momentum, and the upside is real. But the cyclical risk, well-known to investors, might be even more real. Piper Sandler Thrives in the Middle MarketPiper Sandler Companies TodayPIPRPiper Sandler Companies$79.96 -0.90 (-1.11%) As of 12:55 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$61.96▼$95.07Dividend Yield0.88%P/E Ratio20.19Price Target$95.06 Piper Sandler is not a household name, and that is partly by design. Unlike massive commercial banks that manage consumer accounts alongside trillion-dollar trading desks, Piper is a pure-play investment bank. It advises companies on mergers and acquisitions, helps businesses raise money in the stock and bond markets, and provides research and trading services to institutional clients. The company’s focus is on the middle market. That includes growth companies, healthcare businesses, technology firms, and financial institutions that need advisory work but are too small to attract others in the financial sector, like Goldman Sachs NYSE: GS or Morgan Stanley NYSE: MS. Investment Banking Drives Record ResultsThat niche approach paid off in a big way in 2025. For the full year, earnings came in at $281 million, 55% higher than the year before. Piper generated adjusted net revenue of $1.9 billion, up 22% from 2024. More impressive was adjusted earnings per diluted share, which climbed 40% to $17.74 and operating margins, which grew from 19.7% to nearly 22% for the year. That momentum carried into 2026. Piper reported net revenue of $474 million in the first three months, topping the prior year’s $357 million by one-third. Adjusted net revenue rose 22% to $469.5 million, or $1 pe...