On Wednesday, DA Davidson maintained a “buy” rating on shares of Five Star Bancorp (NASDAQ:FSBC) and raised their price target from $34.00 to $35.00. The company’s analysts cited the company’s strong quarterly results, highlighting positive trends in loans and deposits, which they said are holding even when excluding increases in purchase loans and wholesale funding. . Strong asset quality and profitability levels were also noted as factors in the positive outlook.
Five Star Bancorp’s deposit growth in the San Francisco market was particularly highlighted, with the company now employing 24 people and approaching $200 million in deposits. This growth is seen as a continuation of FSBC’s successful expansion and market penetration strategy.
The company reported third-quarter 2024 earnings per share (EPS) of $0.52, which was slightly below analyst expectations of $0.54 and the street average of $0.53. The EPS shortfall was due to higher provision expense ($0.02 per share) and lower fee income, with an impact of $0.01 per share.
Despite the lower EPS, Five Star Bancorp improved quarter-over-quarter preprovisions net earnings per share (PPNR) of $0.85 compared to expectations of $0.87 and last quarter’s reported $0.81. Ta. This signals continued strength in business operations and highlights why the analyst is confident in maintaining a Buy rating and upwardly revising the price target. .
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