Truist Securities initiates OFG Bancorp stock with Buy rating, cites tech edge

Investing.com - Truist Securities initiated coverage on OFG Bancorp (NYSE:OFG) with a Buy rating and a $50.00 price target on Thursday. The stock, currently trading at $42.65, has shown strong momentum with a nearly 17% return over the past six months. According to InvestingPro data, OFG appears slightly overvalued at current levels.

The firm identified OFG as "the challenger bank of Puerto Rico" with technology capabilities that surpass its larger competitors, particularly regarding core banking systems.

Truist highlighted OFG’s position as a more pure-play Puerto Rico bank compared to peers that maintain a larger mix of U.S. deposits and loans, noting this should lead to relatively lower deposit costs due to the less competitive deposit environment in Puerto Rico versus the United States.

The research firm pointed to OFG’s potential for higher growth as the smallest of three banks in the market with opportunities to win market share.

Truist also noted the leadership stability at OFG, mentioning its CEO has held the position since 2004 and that OFG was the only one among three banks that avoided government support during the global financial crisis.

In other recent news, OFG Bancorp reported strong financial results for the second quarter of 2025. The company’s earnings per share (EPS) increased by 6.5% compared to the same period last year, reaching $1.15. Core revenues for the quarter were reported at $182 million, highlighting robust growth. Additionally, OFG Bancorp has raised its loan growth guidance for the year, indicating a positive outlook on future performance. Despite these strong financial results, the company’s stock price experienced a slight decline. These developments reflect OFG Bancorp’s ongoing efforts to enhance its financial standing and market position. Investors may find these figures significant as they assess the company’s performance and future potential.

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