CB Financial stock rating reiterated by KBW amid share repurchase program

Published 20/06/2025, 13:20
CB Financial stock rating reiterated by KBW amid share repurchase program

Investing.com - Keefe, Bruyette & Woods reiterated its Market Perform rating and $31.00 price target on CB Financial Services (NASDAQ:CBFV) on Friday.

KBW highlighted the company’s aggressive share repurchase program as a positive development, noting that CB Financial is carrying significant excess capital following the sale of its insurance business. The company has demonstrated strong shareholder returns, maintaining dividend payments for 32 consecutive years - one of several key metrics available on InvestingPro.

The financial institution currently maintains an above-peer tangible common equity ratio of 9.40%, with stock valuation representing an attractive deployment option at an average repurchase price of 1.05 times first-quarter 2025 tangible book value.

KBW estimates that the implied second-quarter buybacks will add approximately 3% to its current 2026 estimated earnings per share of $2.12, assuming all other factors remain equal.

The research firm believes CB Financial will likely authorize a new repurchase program soon, with other potential capital deployment options including mergers and acquisitions or a securities portfolio restructuring.

In other recent news, CB Financial Services has completed its 5% stock repurchase program, purchasing a total of 257,145 shares at an average price of $28.70 per share. This move is part of the company’s capital management strategy, although the specific reasons for the buyback were not disclosed. During the company’s annual stockholders’ meeting, three directors were elected to serve a three-year term, and Forvis Mazars, LLP was ratified as the independent registered public accounting firm for 2025. Additionally, the compensation for named executive officers was approved by shareholders.

DA Davidson has maintained a Neutral rating on CB Financial Services with a price target of $30.00. The analysis highlighted a miss on pre-provision net revenue due to weaker net interest income and fees, although operating expenses showed improvement. There was a noted decline in loans by 2% and deposits by 1%, despite an expansion in net interest margin by 14 basis points. DA Davidson anticipates better loan growth in 2026, driven by investments in the Treasury Management team, but projects returns to remain below peer averages. The firm suggests that stock price appreciation potential is limited, maintaining its Neutral stance.

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