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Investing.com - DA Davidson raised its price target on Preferred Bank (NASDAQ:PFBC) to $108.00 from $90.00 on Tuesday, while maintaining a Neutral rating on the stock. The bank, currently trading near its 52-week high of $99.78 with a market capitalization of $1.2 billion, has shown strong momentum with a 15.38% year-to-date return. InvestingPro data reveals that 5 analysts have recently revised their earnings estimates upward for the upcoming period.
The price target increase follows Preferred Bank’s earnings rebound after its first quarter was impacted by interest reversals. The bank reported quarter-over-quarter growth in net interest income and fee income, along with lower-than-expected provision expense.
DA Davidson noted that while the lower provision for loan losses supported the quarter’s positive earnings per share result, pre-provision net revenue per share was in line with projections at $3.70, resulting in a pre-provision net revenue return on assets of 2.71%.
The firm highlighted that Preferred Bank was active with its share repurchase program in the second quarter, buying back approximately 710,000 shares. DA Davidson does not expect the company to repurchase additional shares in the third quarter given current share pricing.
Despite the significant price target increase of 20%, DA Davidson maintained its Neutral rating on Preferred Bank stock.
In other recent news, Preferred Bank reported its financial results for the second quarter of 2025. The company exceeded earnings expectations, posting an earnings per share (EPS) of $2.52, while analysts had anticipated $2.43. However, the bank’s revenue came in slightly below projections, registering $70.65 million compared to the expected $70.85 million. These developments highlight the bank’s ability to outperform in terms of earnings, despite a minor shortfall in revenue. The financial results have been a focal point for investors assessing the bank’s performance. Additionally, the stock’s pre-market activity showed a positive response following the earnings announcement. Analyst reactions and stock upgrades or downgrades were not mentioned in the recent developments. The earnings report serves as a key indicator of Preferred Bank’s current financial health.
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