Keefe, Bruyette & Woods has adjusted its valuation on Eagle Bancorp (NASDAQ: EGBN), raising the price target to $25.00 from $18.00 and keeping its existing rating on the stock.
The adjustment follows Eagle Bancorp's return to profitability in the most recent quarter and noted improvements in several credit-related metrics. The research firm pointed to betterment in classified and criticized assets, non-performing assets and net charge-offs as factors supporting the higher target.
Market returns for the stock have been strong in recent periods. Data from InvestingPro shows the share price rose 16.93% over the last week and has advanced 63.66% over the past six months.
Despite those gains and the improved quarterly results, KBW highlighted that the bank's absolute level of problem credits remains high, with 10.8% categorized as classified and criticized.
The research house also adjusted its forward earnings expectations downward. KBW lowered its earnings per share estimates to $1.20 for 2026 and $2.40 for 2027, down from prior forecasts of $1.40 and $2.85, respectively. The firm explained the reductions by citing an expectation of less reserve release in 2026 and a smaller balance sheet in 2027.
Under the new price objective, the $25 target implies a valuation equal to 0.7 times tangible book value and 10.6 times the 2027 earnings per share estimate, metrics KBW used to frame the bank's restored profitability and credit improvement.
Additional company disclosures for the period show Eagle Bancorp Inc. reported fourth-quarter 2025 results that exceeded consensus expectations. The company recorded earnings per share of $0.25, compared with an anticipated loss of $0.11. Revenue for the quarter totaled $80.5 million, ahead of the expected $73.56 million.
According to the available information, there were no reported mergers or acquisitions involving Eagle Bancorp during the quarter. Likewise, there were no analyst upgrades or downgrades recorded in the period covered. These developments collectively provide insight into the bank's recent financial trajectory and the basis for KBW's revised target.