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Investing.com - Raymond James has reduced its price target on Community Trust Bancorp (NASDAQ:CTBI) to $61.00 from $63.00 while maintaining an Outperform rating following the company’s third-quarter results. The regional bank, currently valued at $962 million, trades at an attractive 10.4x earnings and appears undervalued according to InvestingPro analysis.
The financial services firm noted mixed trends in Community Trust Bancorp’s performance, citing elevated net charge-offs related to USDA-guaranteed credit, disappointing net interest margin, and expenses that exceeded forecasts. Despite these challenges, InvestingPro data shows the bank maintains a "GOOD" overall financial health score, with particularly strong profitability metrics.
Despite these challenges, Raymond James highlighted several positive factors, including strong balance growth, modestly outperforming fees when excluding a securities loss, and stable asset quality across the portfolio.
The firm expects Community Trust Bancorp’s net interest margin to trend upward as the bank realizes funding cost benefits from recent and expected rate cuts, which combined with improved balance sheet growth, has lifted Raymond James’ earnings per share forecasts.
Raymond James concluded that risk-reward dynamics remain compelling for Community Trust Bancorp shares, which are currently trading at a discount to peers, with expectations for solid profitability and resilient growth and credit quality through the cycle.
In other recent news, Community Trust Bancorp has announced a 12.8% increase in its quarterly cash dividend, raising it to $0.53 per share. This increased dividend will 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, up from $58.00, while 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 another development, Piper Sandler initiated coverage on Community Trust Bancorp with an Overweight rating and a $66.00 price target. Piper Sandler noted the company’s consistent profitability, strong credit quality, and robust capital position. They also mentioned that the stock trades at a meaningful discount to peer multiples due to geographic bias rather than fundamental weakness. These are the latest developments for Community Trust Bancorp.
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