CB Financial Services stock rating reiterated at Outperform by KBW

Investing.com - Keefe, Bruyette & Woods (KBW) has reiterated an Outperform rating and $39.00 price target on CB Financial Services (NASDAQ:CBFV), citing significant earnings potential from the bank’s securities restructuring.

KBW analyst Tim Switzer highlighted that the restructuring announced today could generate a 15% boost to earnings, calling it a "relatively risk-free set of transactions" that effectively utilizes the bank’s excess capital.

The firm increased its 2026 earnings per share estimates by 15%, while noting that CB Financial’s capital levels will remain above industry peers despite the restructuring.

KBW pointed out that CB Financial shares now appear inexpensive at 10.5 times the updated 2026 earnings estimates, with return on tangible common equity projected to improve to 11.8% in 2026, compared to 8.6% in 2024.

The investment firm maintained its positive outlook on CB Financial, stating that "benefits from years of strategic investments are beginning to take effect," which KBW believes have "reset CBFV’s profitability meaningfully higher."

In other recent news, CB Financial Services reported second-quarter earnings that significantly exceeded analyst expectations. The company posted adjusted earnings per share of $0.74, surpassing estimates by $0.32. Revenue for the quarter reached $13.53 million, exceeding the consensus estimate of $12.79 million. Net interest income increased by 9.3% year-over-year to $12.5 million, and the net interest margin improved to 3.54% from 3.18% in the previous year. Additionally, CB Financial Services implemented a balance sheet repositioning strategy, selling $129.6 million in investment securities. This move resulted in an estimated after-tax realized loss of $9.3 million. In a related development, Keefe, Bruyette & Woods upgraded the company’s stock rating from Market Perform to Outperform, citing benefits from strategic investments, including a 42 basis point expansion in net interest margin year-to-date.

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