City Holding stock price target raised to $135 from $125 at KBW

Published 23/07/2025, 16:28
City Holding stock price target raised to $135 from $125 at KBW

Investing.com - Keefe, Bruyette & Woods raised its price target on City Holding (NASDAQ:CHCO) to $135.00 from $125.00 on Wednesday, while maintaining a Market Perform rating on the stock.

The increase follows what KBW described as "another strong quarter" for City Holding, with earnings beat primarily driven by net interest income and provision improvements. The firm noted that net interest margin expanded 11 basis points to 3.95% from 3.84% in the last quarter, while growth improved to 5%. The company maintains a solid return on assets of 1.82%, reflecting strong operational efficiency.

KBW highlighted improved credit metrics, including a decline in non-performing loans and an allowance for credit losses reversal, which was driven by an upgraded credit. These factors contributed to the firm raising its 2025 and 2026 earnings per share estimates by 8% and 5% to $8.70 and $8.25, respectively.

The investment firm noted that City Holding shares currently trade at a premium of 15.6 times 2026 estimated earnings per share and 3.08 times tangible book value per share.

KBW justified this premium valuation by pointing to City Holding’s consistent earnings performance, high profitability levels (2% return on assets and 22% return on tangible common equity), and tangible book value growth of 15% annually. InvestingPro analysis suggests the stock is fairly valued at current levels, with additional metrics and insights available to subscribers.

In other recent news, City Holding Co. has announced a dividend of $0.79 per share for its shareholders. The company’s Board of Directors has approved this dividend, which will be available to shareholders on record as of July 15, 2025. The payment date for the dividend is set for July 31, 2025. This decision was made public through the company’s 8-K filing with the Securities and Exchange Commission (SEC). The announcement underscores City Holding’s ongoing commitment to delivering value to its shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.