Raymond James raised its 12-month price target on Community Trust Bancorp (NASDAQ:CTBI) to $69.00 from $61.00 and maintained an Outperform rating following the company's fourth-quarter financial results. The new target is consistent with InvestingPro data cited showing CTBI trading at a price-to-earnings ratio of 11.6, which the data set identifies as undervalued.
The bank reported earnings that exceeded expectations, with both diluted earnings per share and pre-tax, pre-provision income coming in stronger than anticipated. Management and analysts attributed the upside in part to higher net interest income, supported by an improved net interest margin that widened by 7 basis points from the third quarter.
Over the last twelve months CTBI posted diluted EPS of $5.43, and analysts continue to forecast profitability for the year ahead. Raymond James signaled that it expects the bank's net interest margin to stabilize near current levels, and it noted continued solid growth metrics. The firm also observed that CTBI currently trades at a discount to peers despite the expectations for sustained profitability, growth, and resilient credit quality.
On the balance sheet, Community Trust Bancorp reported quarter-over-quarter loan growth of 2.1%, outpacing deposit growth of 0.1% during the same period. The company also recorded an improvement in credit quality relative to the prior quarter. Capital measures were described as strengthened during the quarter, while operating expenses came in lower than Raymond James had anticipated.
In a separate corporate action, Community Trust Bancorp declared a quarterly cash dividend of $0.53 per share. The dividend is scheduled for payment on January 2, 2025, to shareholders on record as of December 15, 2025. The company reported total assets of $6.6 billion. Community Trust Bancorp operates multiple banking locations across Kentucky, West Virginia, and Tennessee.
These items - an upward adjustment to the price target, improved net interest income and margin, modest but positive loan growth, strengthened capital, and a declared cash dividend - form the core of Raymond James' assessment. The firm's commentary highlights expectations for stable net interest margin and continued solid growth, and it points to a valuation gap versus peers that the analyst view interprets as a potential source of upside.
Investors and market participants tracking regional banks and the financial sector will likely weigh the analyst's revised target alongside the bank's reported fundamentals: earnings power as reflected in trailing EPS, recent margin improvement, deposit and loan growth dynamics, credit quality trends, and the affirmed capital and expense outcomes.