Bank OZK stock price target raised to $53 by KBW on CIB growth momentum

Published 22/07/2025, 14:46
Bank OZK stock price target raised to $53 by KBW on CIB growth momentum

Investing.com - Keefe, Bruyette & Woods raised its price target on Bank OZK (NASDAQ:OZK) to $53.00 from $48.00 while maintaining a Market Perform rating.

The firm cited momentum in the bank’s Corporate and Investment Banking (CIB) growth, which is offsetting a slowdown in its Real Estate Specialties Group (RESG). Loan growth in the CIB segment increased 25% on an annualized basis in the most recent quarter. This growth comes as Bank OZK maintains a strong dividend track record, having raised its dividend for 28 consecutive years, with a current yield of 3.4%.

KBW has increased its CIB growth rate projections, expecting the segment to reach $5.5 billion by the end of 2025 and $8.5 billion in 2026. This translates to total loan growth of 14% in 2025 and 9% in 2026.

The firm also highlighted stable credit conditions, higher net interest margin, and increased share buybacks as positive factors for Bank OZK. Based on these developments, KBW raised its earnings per share estimates by 2% to $6.25 for 2025 and $6.65 for 2026.

The price target increase reflects both the higher earnings estimates and what KBW describes as "a more resilient macro environment."

In other recent news, Bank OZK reported better-than-expected financial results for the second quarter of 2025. The company announced earnings per share of $1.58, surpassing analyst estimates of $1.53. Additionally, revenue reached $427.99 million, exceeding the anticipated $423.45 million. These figures highlight the bank’s strong performance during the quarter. The earnings release did not mention any mergers or acquisitions. Analyst firms have not reported any recent upgrades or downgrades for Bank OZK. These developments are part of the latest updates concerning the company.

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