TD Cowen lowers Bank OZK stock price target on higher RESG repayments

Investing.com - TD Cowen has reduced its price target on Bank OZK (NASDAQ:OZK) to $61.00 from $67.00 while maintaining a Buy rating on Tuesday. According to InvestingPro data, the stock has fallen over 10% in the past week, with analyst targets ranging from $40 to $67, suggesting potential upside from current levels.

The firm cited larger-than-expected 2026 Real Estate Specialties Group (RESG) repayments as the primary reason for the adjustment, though it expressed encouragement about the continued strength of the bank’s Corporate and Investment Banking (CIB) division.

TD Cowen noted that Bank OZK is advancing its diversification strategy, which the market will likely reward with a higher multiple despite some credit migration in the loan portfolio.

The research firm highlighted that overall credit trends are holding up well, with total criticized assets decreasing quarter-over-quarter, creating what it views as a favorable risk-reward profile.

Bank OZK shares currently trade at 7.5 times 2026 estimated earnings per share, representing a 23% discount to peers, which TD Cowen characterized as "an appealing entry point" following the recent sell-off.

In other recent news, Bank OZK reported its third-quarter 2025 earnings, showing a mixed financial performance. The bank’s earnings per share (EPS) were $1.59, which did not meet the anticipated $1.66, resulting in a 4.22% negative surprise. On a positive note, Bank OZK surpassed revenue expectations, reporting $449.93 million compared to the forecasted $447.23 million. This revenue beat stands out as a significant achievement amidst the earnings miss. Despite these developments, the stock experienced a decline in premarket trading. No information regarding analyst upgrades or downgrades was provided. These recent developments reflect the current state of Bank OZK’s financial health.

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