Cathay General Bancorp (CATY) PT Lowered to $57 at Stephens

Stephens analyst Andrew Terrell lowered the price target on Cathay General Bancorp (NASDAQ: CATY) to $57.00 (from $60.00) while maintaining a Overweight rating.

The analyst commented: "CATY 4Q results included Op. EPS of $1.13 vs. our $1.09 and Street’s $1.10 with PPNR of $101.6 mil. beating our forecast by +0.9% but missing consensus by -0.2%, mostly on expenses as NII was +0.7% to consensus with NIM coming in +2 bps better-than-expected. The one knock on the quarter was elevated NCOs at 0.34% (due to one C&I SNC) and a +$90 mil. lift in special mention loans (to $293 mil.). Outside of the credit noise, we thought the quarter was solid. 2025 guidance was provided and, while we do think there is some modest downside to consensus operating expenses, we suspect that the 3.10%-3.20% NIM guidance established for 2025 is a relatively low bar that could provide a nice earnings catalyst throughout the year. We forecast FY25 NIM of 3.27%. Moving ’26 Op. EPS to $5.00 (from $5.23) and PT to $57 (from $60). Reiterate OW."

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