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Investing.com - DA Davidson maintained its Neutral rating and $8.50 price target on BCB Bancorp (NASDAQ:BCBP) stock following the bank’s recent quarterly results. According to InvestingPro data, the stock has fallen nearly 8% in the past week, though current analysis suggests the shares are trading close to their Fair Value.
The bank reported better-than-expected pre-provision net revenue (PPNR), driven by improved net interest income and fees, which offset weaker operating expenses. However, loan volumes decreased 8% quarter-over-quarter while deposits declined 4% during the same period.
Credit quality metrics showed continued pressure with net charge-offs increasing 22 basis points quarter-over-quarter to 78 basis points. Non-performing assets also rose 14 basis points to 350 basis points, maintaining the need for a high loan loss reserve at 1.74% of total loans.
DA Davidson noted that 60% of non-accrual loans are current, and the bank is making progress working through its troubled exposures. The firm lowered its earnings per share estimates due to weaker growth projections and operating expense concerns.
BCB Bancorp has committed to fully addressing risk management issues in 2025, which could set up stronger performance in 2026, but DA Davidson sees limited upside potential with shares trading at approximately 0.5 times tangible book value.
In other recent news, BCB Bancorp has been the subject of analyst attention, with both Piper Sandler and Keefe, Bruyette & Woods adjusting their stock price targets. Piper Sandler raised its price target for BCB Bancorp to $9.50, maintaining a Neutral rating, due to the bank’s credit outlook. This adjustment follows a reported steep first-quarter net loss, attributed to a significant reserve against a cannabis loan. Meanwhile, Keefe, Bruyette & Woods lowered their price target to $9.50 from $10.50, while keeping a Market Perform rating. The firm highlighted ongoing credit challenges, noting that non-performing assets are at 3.50% and net charge-offs have reached 0.78%. These credit concerns continue to impact perceptions despite any positive developments. These recent developments reflect the mixed sentiment among analysts regarding BCB Bancorp’s financial health.
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