Raymond James has raised its price target on Customers Bancorp to $100.00 from $95.00 and sustained a Strong Buy recommendation following the bank's fourth-quarter 2025 disclosure. The stock is trading at $74.52 and has returned 29.94% over the past year; its historical volatility is indicated by a beta of 1.62.
The upgrade reflects what Raymond James described as "continued strong business momentum" evident in the most recent quarterly performance. Supporting data cited by the firm includes a 12.31% increase in revenue over the last twelve months, according to InvestingPro.
Raymond James flagged several operational drivers behind the more bullish stance. The firm expects deposits to grow as a result of teams hired by the bank over the past two years, an outcome Raymond James anticipates will lead to lower funding costs for the institution. The analyst note also emphasized the bank's expanding venture business and plans to push the cubiX payments platform into additional industry verticals, explicitly naming real estate and mortgage finance as target areas.
On valuation, Raymond James said Customers Bancorp's "discount valuation should continue to narrow" if the company executes on its stated franchise strategy, and that there is likely "upside to current estimates."
Investors and analysts are parsing the company's fourth-quarter financials, which were mixed. Adjusted earnings per share (EPS) came in at $2.06, marginally above the analyst consensus of $2.03. Revenue for the period was reported at $214.61 million, however, below the expected $228.35 million.
DA Davidson, in separate coverage, has maintained a Buy rating on Customers Bancorp with a price target of $93.00.
The company's reported EPS was affected by a $2.8 million loss tied to the redemption of preferred stock, equivalent to $0.08 per share; after that item the reported EPS was $1.98. On a core basis, EPS was $2.06, which was modestly under DA Davidson's internal estimate of $2.07 but above the broader consensus forecast of $2.04.
These results present a mixed operational picture: stronger-than-expected core earnings alongside a revenue shortfall and a one-time redemption loss. Raymond James' revised target and maintained Strong Buy reflect confidence in deposit growth, payments-platform expansion and the potential narrowing of valuation discount if execution continues as expected.
Market participants will likely monitor deposit trends, the pace of cubiX's industry rollouts and any further impacts from funding-cost dynamics as indicators of whether the bank's improved outlook sustains.