DA Davidson analyst Gary Tenner lowered the firm’s price target on Preferred Bank to $76 from $82 and keeps a Neutral rating on the shares. Q4 saw net interest margins expand 38bps but Q1 could be "flat-to-higher" as deposit pricing catches up to the asset side of the balance sheet, the analyst tells investors in a research note. Tenner also warns that Q4 might have been the peak earnings quarter for the rate cycle for Preferred Bank, as higher funding costs, operating expenses, and slower loan growth become "relative headwinds".
Published first on TheFly
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Read More on PFBC:
- Preferred Bank reports Q4 EPS $2.71, consensus $2.57
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- Preferred Bank Increases Quarterly Cash Dividend
- Preferred Bank raises quarterly dividend 28% to 55c from 43c per share
