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Investing.com - Keefe, Bruyette & Woods raised its price target on RBB Bancorp (NASDAQ:RBB) to $23.00 from $21.00 while maintaining a Market Perform rating.
The price target increase follows what the research firm described as "strong results" that demonstrated progress in the bank’s ongoing turnaround efforts. RBB shares jumped 6.8% following the earnings announcement, compared to a 0.1% decline in the KRX index.
The firm noted improvements in asset quality and growth in pre-provision net revenue (PPNR) during the third quarter of 2025, highlighting these as positive indicators for the bank’s recovery strategy.
Despite the improved outlook, Keefe, Bruyette & Woods maintained its Market Perform rating, citing RBB’s lower profitability levels compared to peers, with projected return on tangible common equity of 9% and return on assets of 0.84% for 2027.
The research firm observed that RBB still trades at approximately 0.75 times tangible book value, representing a "meaningful discount" to its peer group, as the company continues to be viewed as a "show me" story following challenging recent years.
In other recent news, RBB Bancorp reported impressive financial results for the third quarter of 2025, exceeding analyst expectations. The company achieved an earnings per share (EPS) of $0.59, which is significantly higher than the forecasted $0.41, marking a 43.9% earnings surprise. Additionally, RBB Bancorp’s revenue surpassed projections, reaching $31.95 million compared to the expected $31.72 million. These results highlight the company’s strong performance during the quarter. Analysts had previously set lower expectations, but RBB Bancorp’s actual results have demonstrated robust financial health. These developments are crucial for investors considering the company’s recent performance.
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