Market Experts Favor S&T Bancorp Following Rating Upgrade

Shares of S&T Bancorp have demonstrated notable upward momentum, fueled by a combination of a key analyst upgrade and strong quarterly performance metrics. The regional banking stock is attracting increased investor interest as its earnings power improves.

The positive sentiment surrounding the company was reinforced by its third-quarter 2025 financial report, released on October 23. The figures surpassed market expectations on several fronts:
* Earnings per share (EPS) reached $0.91, exceeding analyst estimates by 5.81%.
* A 5-basis-point expansion pushed the net interest margin (NIM) to 3.93%, driven primarily by loan growth.
* Total loan portfolios increased by $46.6 million, with commercial real estate (CRE) lending being a significant contributor.
* The institution maintained a robust capital position, providing a solid foundation for future expansion.

These operational achievements highlight the bank's capacity to perform profitably within the current interest rate environment.

Should investors sell immediately? Or is it worth buying S&T?

Zacks Investment Research Issues "Buy" Rating

A significant catalyst arrived on December 9 from Zacks Investment Research. The analysis firm elevated its rating for S&T to a Zacks Rank #2, which translates to a "Buy" recommendation. This ranking places the equity within the top 20% of all stocks covered by Zacks and is predicated on rising earnings estimates. Notably, the consensus earnings estimate for the full 2025 fiscal year has been revised upward by 3.8% over the preceding three months, signaling a favorable business trend.

Valuation and Forward-Looking Perspective

While the broader analyst consensus for S&T Bancorp remains at "Hold," the recent upgrade suggests a more optimistic near-term outlook. The average price target among analysts stands at approximately $40.40, indicating a potential for moderate downward movement from recent levels. The stock closed its most recent session at $42.19, following a four-day winning streak that contributed to a two-week gain of 6.71%. Market participants are now looking ahead to the fourth-quarter 2025 results for the next significant data point.