Preferred Bank price target raised to $70 from $60 at DA Davidson

DA Davidson analyst Gary Tenner raised the firm’s price target on Preferred Bank to $70 from $60 and keeps a Neutral rating on the shares. The company’s Q2 results marked a “solid quarter” despite continued funding pressure, increased cost, and net interest margin compression, the analyst tells investors in a research note. The firm sees further net interest margin headwinds, but it is also raising its estimates on higher net interest income, along with fee income growth and well-controlled expenses.