Metropolitan Bank stock price target raised to $95 from $81 at KBW

Investing.com - Keefe, Bruyette & Woods raised its price target on Metropolitan Bank Holding (NYSE:MCB) to $95.00 from $81.00 on Monday, while maintaining an Outperform rating on the stock.

The increase follows Metropolitan Bank’s strong quarterly performance, which included a $0.25 per share pre-provision net revenue beat. The bank demonstrated impressive net interest margin expansion of 15 basis points compared to the last quarter.

Metropolitan Bank reported robust growth metrics, with loans increasing at a 17% annualized rate and deposits growing at a 21% annualized rate quarter-over-quarter. The bank also announced a new quarterly dividend of $0.15 per share and reauthorized its $50 million share buyback program.

KBW noted that despite a provision miss, credit quality at Metropolitan Bank remains stable. The research firm expects the bank’s net interest margin to continue improving modestly, driven by deposit growth and back-book repricing.

The firm highlighted Metropolitan Bank as a unique investment opportunity, citing its consistent strong growth profile while trading at a price-to-book ratio of 1.12. The stock has demonstrated strong momentum with a 27% return over the past six months and a 33.49% gain year-to-date. InvestingPro subscribers can access 8 additional key insights and a comprehensive analysis of Metropolitan Bank’s valuation metrics and growth potential.

In other recent news, Metropolitan Commercial Bank reported strong financial results for the second quarter of 2025, surpassing analysts’ expectations. The bank’s earnings per share (EPS) reached $1.76, exceeding the forecast of $1.73, while revenue came in at $76.27 million, surpassing the expected $72.55 million. This performance reflects an 8% increase in revenue from the previous quarter and a 21% rise in EPS. The bank also announced its first-ever common stock dividend and a new share repurchase program, highlighting its commitment to returning value to shareholders. Metropolitan Commercial Bank’s loan portfolio expanded by $271 million, a 4.3% increase, with core deposits growing by $342 million, or 5.3%. The bank’s net interest margin improved to 3.83%, up 15 basis points from the previous quarter, indicating better profitability from its lending activities. Analysts from firms like Piper Sandler noted the bank’s strong loan and deposit growth, with the bank expressing confidence in maintaining a balanced loan mix and continued deposit growth. The bank’s strategic focus on relationship-based commercial banking and strong credit underwriting were key contributors to its success.

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