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Investing.com - Keefe, Bruyette & Woods (KBW) has lowered its price target on Community Financial System (NYSE:CBU) to $67.00 from $69.00 while maintaining a Market Perform rating on the stock.
KBW described the quarter as "relatively in line" with net interest income and credit performance offsetting weaker-than-expected fee income. The firm noted that these results keep the company’s overall financial story intact despite the fee income shortfall. The company maintains strong fundamentals with a 3.4% dividend yield and has demonstrated profitability over the last twelve months.
The research firm projects continued net interest margin expansion of approximately 4 basis points per quarter in the second half of 2025, primarily driven by higher loan yields, while expenses are expected to remain stable.
KBW also anticipates seasonally improved fees in the second half of the year, specifically highlighting expected growth in insurance revenues that should help offset the recent weakness in fee income.
Based on these factors, KBW does not expect significant changes to consensus estimates for Community Financial System, supporting its decision to maintain the Market Perform rating while adjusting the price target.
In other recent news, Community Bank System Inc . reported its second-quarter 2025 earnings. The company exceeded analysts’ expectations with an earnings per share (EPS) of $1.04, which was above the forecasted $1.01, marking a 2.97% positive surprise. However, Community Bank System’s revenue came in at $199.3 million, slightly below the anticipated $201.23 million, resulting in a negative surprise of -0.96%. These developments reflect a mixed performance, with the EPS beat overshadowed by a revenue shortfall. Analysts had projected higher revenue figures, which the company did not meet. Despite the earnings per share exceeding expectations, the revenue miss has drawn attention from investors. No upgrades or downgrades by analyst firms were mentioned in the recent developments.
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