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QCR Holdings price target raised to $86 from $70 after 2Q results

EditorLina Guerrero
Published 07/25/2024, 04:29 PM
QCRH
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On Thursday, QCR Holdings (NASDAQ:QCRH) saw its price target increased by DA Davidson to $86.00, a significant rise from the previous target of $70.00. The firm has maintained a Buy rating on the stock. The adjustment follows QCR Holdings' strong performance in the second quarter of 2024, which was marked by robust loan growth, net interest margin (NIM) expansion, and a substantial contribution from fee income.

The company demonstrated effective cost control measures and maintained steady credit statistics throughout the quarter. These factors have contributed to a positive outlook from the management team for the upcoming quarters. This optimistic stance has played a pivotal role in DA Davidson's decision to revise its earnings per share (EPS) estimates upward for QCR Holdings.

The analyst from DA Davidson highlighted the company's second-quarter achievements, noting the impressive results across multiple financial metrics. The constructive comments from QCR Holdings' management regarding the future have further cemented the firm's confidence in the bank's trajectory.

The revised price target of $86 reflects a new level of expectation for QCR Holdings' stock performance, taking into account the company's recent accomplishments and promising indicators for continued success. The Buy rating reaffirms DA Davidson's positive view on the stock's potential for investors.

QCR Holdings' management's forward-looking statements have provided a solid foundation for the analyst's optimistic outlook. As the company moves ahead, the market will be watching to see if QCR Holdings can sustain its growth and meet the heightened expectations set by the revised price target and sustained Buy rating.

In other recent news, QCR Holdings, Inc. has reported strong financial results for the first quarter of 2024, with an adjusted net income of $26.9 million, or $1.59 per diluted share. The company has seen significant growth in total loans and core deposits, while non-performing assets have shown a decline. QCR Holdings also forecasts loan growth of 8% to 10% for the year, despite a decrease in non-interest income.

In addition to its financial performance, there have been significant leadership and governance changes at QCR Holdings. The company announced the planned retirement of John H. Anderson, CEO of Quad City Bank and Trust Company (QCBT), a subsidiary of QCR Holdings. Laura Divot Ekizian is set to succeed Anderson, ensuring continuity in the company's management team.

Furthermore, QCR Holdings confirmed the re-election of four Class I directors during its annual stockholders' meeting. The board of directors also declared a cash dividend of $0.06 per share, payable to shareholders of record. These recent developments reflect the company's strategic direction and commitment to its shareholders.

InvestingPro Insights

Following the upbeat analysis by DA Davidson, current metrics from InvestingPro reinforce the positive sentiment surrounding QCR Holdings. Notably, the company's P/E ratio stands at an attractive 10.98, suggesting a reasonable valuation compared to near-term earnings growth. Additionally, QCR Holdings has shown a commitment to shareholders, maintaining dividend payments for an impressive 23 consecutive years, which is particularly comforting for income-focused investors.

InvestingPro data also highlights a robust 5.98% revenue growth over the last twelve months as of Q1 2024, indicating the company's ability to expand its financials in a competitive landscape. The stock has experienced a strong return over the last month, with a 24.89% increase, reflecting investor confidence and market momentum. Moreover, three analysts have recently revised their earnings estimates upwards for the upcoming period, further supporting the notion that QCR Holdings is on a path to continued profitability.

For those interested in a deeper dive into QCR Holdings' financial outlook, InvestingPro offers additional insights and tips. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and explore the full range of expert analysis, including 11 more InvestingPro Tips available at https://www.investing.com/pro/QCRH.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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