Community Trust Bancorp stock initiated with Overweight rating by Piper Sandler

Published 18/08/2025, 09:40
Community Trust Bancorp stock initiated with Overweight rating by Piper Sandler

Investing.com - Piper Sandler initiated coverage on Community Trust Bancorp (NASDAQ:CTBI) with an Overweight rating and a $66.00 price target on Monday. The stock, currently trading at $55.05, appears undervalued according to InvestingPro analysis, with a P/E ratio of 10.84x.

The research firm cited CTBI’s "consistent profitability, strong credit quality, and robust capital position" while noting the stock trades at a "meaningful discount to peer multiples." Piper Sandler attributed this valuation gap to "geographic bias rather than fundamental weakness."

The bank consistently delivers return on average assets (ROAA) and return on tangible common equity (ROTCE) exceeding industry medians, according to the research note. These metrics are supported by "disciplined expense control, a balanced loan portfolio, and prudent credit underwriting."

Piper Sandler highlighted CTBI’s strong capital ratios and conservative risk appetite as factors that position the bank well to navigate economic cycles while maintaining lending capacity. The firm noted these traits enhance resilience and limit downside risk compared to peers.

The research firm also pointed to CTBI’s dividend yield, which ranks among the highest in its peer group, providing investors with "a steady income stream while preserving flexibility" for potential merger and acquisition opportunities.

In other recent news, Community Trust Bancorp announced a 12.8% increase in its quarterly cash dividend, raising it to $0.53 per share. This increased dividend is set to be payable on October 1, 2025, to shareholders of record as of September 15, 2025. Additionally, Raymond James has raised its price target for Community Trust Bancorp to $63.00 from $58.00, maintaining an Outperform rating. The firm highlighted strong core trends in the company’s second-quarter results, including a wider net interest margin and loan growth that exceeded projections. In corporate governance updates, Community Trust Bancorp appointed David L. Baird to its Board of Directors. Baird, an attorney and Pikeville native, brings his expertise to the board. Furthermore, the company reported the retirement of Franklin H. Farris, Jr. from its board, reducing the number of board members from ten to nine. Farris had served as Chairman of the Audit and Asset Quality Committee before his retirement.

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