On Friday, Piper Sandler, a financial services firm, increased its stock price target for Orange County Bancorp (NASDAQ:ICBK) (NASDAQ: OBT) shares to $71 from $66, while reiterating an Overweight rating on the stock.
The firm's analyst highlighted Orange County Bancorp as one of their top small-cap bank picks for the holiday season, noting its potential as an attractive investment. The stock has shown impressive momentum with a 31% gain over the past six months, and according to InvestingPro analysis, the company appears slightly undervalued at current levels.
Orange County Bancorp, known for its commercial focus, boasts $2.5 billion in assets and a wealth management division with $1.8 billion in assets under management. The company has been recognized for its exceptional management and consistent profitability, maintaining dividend payments for 17 consecutive years.
With a market capitalization of $339 million and revenue growth of 4.9% in the last twelve months, it has also experienced growth rates that surpass those of its peers. InvestingPro data shows the company maintains a GOOD financial health score, with particularly strong marks in profitability metrics.
The revised 12-month price target of $71 represents a valuation of 12.5 times the firm's 2025 earnings per share (EPS) estimate. This is an increase from the previous multiple of 11.6 times, suggesting that the bank deserves a premium compared to its peers due to its strong performance and growth prospects.
The analyst's positive outlook on Orange County Bancorp is based on the company's historical financial results and growth trajectory. The bank's focus on community and commercial banking has been a cornerstone of its success, and the analyst's recommendation reflects confidence in the bank's future performance.
In other recent news, Orange County Bancorp, the holding company for Orange Bank & Trust Company and Hudson (NYSE:HUD) Valley Investment Advisors, announced a rise in its quarterly cash dividend to $0.25 per share, indicating a robust financial health and commitment to its shareholders.
The company also reported a third-quarter earnings per share (EPS) of $0.57 for the year 2024. However, a significant loan loss provision impacted the EPS by approximately $0.79. Following these results, Piper Sandler revised its outlook on Orange County Bancorp, reducing the price target from $69.00 to $66.00, while maintaining an Overweight rating.
In addition to financial updates, the company announced the appointment of Jonathan Schiller to its and the Bank's Boards of Directors. Schiller, the founder and CEO of Hospicom Inc., brings a unique blend of scientific and business acumen to the board.
Recent developments also include changes to the company's bylaws, mandating directors to hold shares of the company's capital stock with a minimum fair market value of $1,000, a significant shift from the previous requirement of owning $125,000 of the company's common stock. These changes reflect Orange County Bancorp's commitment to aligning the interests of its directors with those of its shareholders, reinforcing good governance practices.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.