Preferred Bank price target lowered to $90 from $95 at DA Davidson

DA Davidson analyst Gary Tenner lowered the firm’s price target on Preferred Bank (PFBC) to $90 from $95 and keeps a Neutral rating on the shares. The company’s Q1 earnings were negatively impacted by the reversal of about $3M of interest accruals, remaining primarily to two loans added to non-performing loan status during the quarter, the analyst tells investors in a research note. The firm adds however that it expects the net interest margin to recover somewhat in the second quarter, pushing its Q2 EPS estimate higher by 3c to $2.41.