Preferred Bank price target lowered to $82 from $85 at Stephens

Stephens analyst Andrew Terrell lowered the firm’s price target on Preferred Bank to $82 from $85 and keeps an Overweight rating on the shares after the bank reported Q4 operating EPS ahead of the firm’s and Street’s estimates. The firm expects some lingering net interest margin pressure from deposit cost increases in the near term and rate cuts “clearly present a headwind” beginning in the second half considering the company’s asset sensitive balance sheet, but it stills sees Preferred delivering a “peer-leading” ROA in 2025, the analyst tells investors.