Preferred Bank's Near-Term Capital Focus To Remain On Buybacks, Analyst Sees Tepid Loan Growth
Portfolio Pulse from Nabaparna Bhattacharya
Stephens analyst Andrew Terrell reiterated an Overweight rating on Preferred Bank (NASDAQ:PFBC), raising the price target to $68 from $64. PFBC's Q2 earnings beat estimates, and despite NIB outflows exceeding anticipations, Terrell remains optimistic. The analyst expects tepid loan growth in the near term due to the company's selectivity on new credits and a broader slowdown in borrower demand. The company's near-term capital focus is expected to remain on buybacks, with ~$100mm incorporated in estimates. Terrell raised 2023 and 2024 Op. EPS estimates to $10.57 and $9.74 respectively.
July 21, 2023 | 7:37 pm
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Preferred Bank's Q2 earnings beat estimates and its price target has been raised to $68 from $64. The company's near-term capital focus is expected to remain on buybacks. However, tepid loan growth is expected in the near term.
The news is directly about Preferred Bank and is likely to have a positive impact on its stock price in the short term. The company's Q2 earnings beat estimates and its price target has been raised, which are positive signals for investors. However, the expected tepid loan growth in the near term could be a concern.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100