Preferred Bank (PFBC) PT Lowered to $93 at Stephens

Stephens analyst Andrew Terrell lowered the price target on Preferred Bank (NASDAQ: PFBC) to $93.00 (from $105.00) while maintaining a Equal Weight rating.

The analyst commented: "PFBC reported Op. EPS of $2.78 vs. our $2.56 and Street’s $2.73 with PPNR of $53.7 mil. coming in +5.6% to us and +2.4% to Street. Following the quarter, our ‘27E Op. EPS moves +2.5% to $11.01. Despite the beat and positive revision, shares are off -12% vs. KRE (-15.6% absolute) since reporting results, predominantly on a significant lift in criticized loans (from $151.0 mil., to $248.5 mil.) that included the addition of one singular $123 mil. relationship (9 loans) that we suspect are related to exposure to Cantor Group that impacted a couple of regional banks in 3Q. While PFBC is in first position and disclosed LTV/DSCR on the properties appears OK, call commentary was relatively unclear regarding the anticipated workout process / timeline, and we struggle to see a material valuation catalyst path while this remains a potential headwind. Reiterate EW rating, adjust PT to $93 (from $105)."

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