Piper Sandler stock prediction after solid Q3 results

On Friday, Piper Sandler Companies (NYSE:PIPR) shares advanced 5.65% after reporting its fiscal third-quarter results. The company announced its most recent quarterly results before the market opened, surpassing the consensus Street expectations for revenue and earnings. Piper Sandler also declared a quarterly dividend of $0.55 per share and a special dividend of $3.00.

The company posted FQ3 non-GAAP earnings per share of $4.55, exceeding the average analyst estimate of $3.77. On the other hand, its GAAP EPS of $2.64 was $0.34 ahead of estimates, while revenue for the quarter surged 46.7% from FQ3 in 2020 to $445.6 million, surpassing analyst estimates by $41.96 million.

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From an investment perspective, Piper Sandler shares trade at attractive trailing 12-month and forward P/E ratios of 15.92 and 11.54, respectively. Therefore, the stock could be a compelling option for short-term bargain hunters.

On the other hand, analysts expect PIPR’s earnings per share to decline by 57.30% this year before falling 19.46% next year. As a result, growth investors could opt for alternatives in the market.

The stock is up nearly 66% this year and more than 97% over the last 12 months. Therefore, it could be time to take some profits.

Technically, Piper Sandler shares seem to be trading within an ascending channel formation in the intraday chart. As a result, the stock has surged closer to the overbought conditions of the 14-day RSI.

However, with shares yet to retest the resistance levels, investors could target extended gains at about $171.27, or higher at $178.50. On the other hand, if the stock pulls back to avoid crossing to overbought conditions, it could find support at $158.06 and $150.21.

Room for more gains?

In summary, although Piper Sandler shares seem poised for a pullback after rallying closer to overbought conditions, its current valuation and the recent earnings beat could be a catalyst for a bigger rally.

Therefore, the bull run may not be over yet.

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