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Investing.com - Raymond (NSE:RYMD) James has reiterated its Strong Buy rating and $73.00 price target on Community Financial System (NYSE:CBU) following the company’s recent earnings report. According to InvestingPro data, the stock appears undervalued at its current price of $55.29, with analysts setting targets between $62 and $73.
Community Financial reported GAAP earnings per share of $0.97, while core EPS reached $0.99 when excluding restructuring costs and acquisition expenses. This core result fell $0.05 below Raymond James’ estimate and $0.02 below consensus expectations. The company maintains strong fundamentals, with a 27-year track record of consecutive dividend increases and a current dividend yield of 3.4%.
The earnings miss was primarily attributed to lower-than-expected fee income and higher-than-expected operating expenses. These negative factors were partially offset by higher-than-anticipated net interest income and lower-than-expected credit costs.
Despite the weaker quarter, Raymond James noted that the outlook for fee income growth remains strong due to capital markets appreciation and favorable insurance market conditions. The firm also expects net interest margin expansion to continue as assets reprice.
Raymond James maintained its positive stance on Community Financial shares, which it considers attractive at 11.4 times its 2026 EPS estimates, supporting the reiterated Strong Buy rating and $73 price target. The stock currently trades at a P/E ratio of 15.8x and a favorable PEG ratio of 0.86, suggesting potential value for investors.
In other recent news, Community Bank System Inc . reported its second-quarter 2025 earnings, which showed a mixed performance. The company exceeded analysts’ expectations with earnings per share (EPS) of $1.04, surpassing the forecasted $1.01. However, revenue fell short, reaching $199.3 million compared to the anticipated $201.23 million. This revenue shortfall resulted in a negative surprise of -0.96%. Meanwhile, Keefe, Bruyette & Woods (KBW) adjusted its price target for Community Financial System to $67.00 from $69.00, maintaining a Market Perform rating. KBW noted that while net interest income and credit performance were strong, weaker-than-expected fee income impacted the results. Additionally, Community Financial System announced the planned retirement of Jeffrey M. Levy, Senior Vice President and Chief Banking Officer, effective December 31, 2025. These developments highlight the company’s ongoing strategic and financial adjustments.
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