Raymond James raised its 12-month price target on QCR Holdings (NASDAQ:QCRH) to $103.00 from $88.00 on Friday, while retaining an Outperform rating on the shares. At the time of the update the company was trading at $90.21, roughly 1% below its 52-week high of $92.00, and carries a market capitalization of $1.51 billion.
The upgrade followed QCR Holdings' fourth-quarter results, which Raymond James described as "strong." The firm attributed recent earnings performance to robust swap fee income, solid growth across the balance sheet and an expanded net interest margin. For the last twelve months QCRH reported diluted earnings per share of $7.49, which translates to a price-to-earnings ratio of 11.9 based on the prevailing stock price.
Raymond James noted, however, that some of the upside was tempered by a higher expense base associated with stronger revenue activity. As a result the broker modestly lowered its EPS estimates to reflect increased provisions and operating expenses. The analyst commentary emphasized that core operating trends remain constructive for the company, excluding typical first-quarter seasonality, and suggested there is potential for additional net interest margin improvement in a declining rate environment.
Additional metrics cited in the research note and related data include revenue growth of 6.43% and a return on common equity of 12%. The firm highlighted that QCR Holdings' expanding capital provides greater flexibility and pointed to strong tangible book value growth and profitability as reasons the stock's risk-reward profile "skews favorably." Raymond James concluded that these characteristics support premium valuation multiples relative to peers.
Other industry analysts responded to QCR's quarter with their own upward revisions. Piper Sandler raised its price target to $108.00 and kept an Overweight rating, calling out high-quality organic balance sheet growth and a specialized Low-Income Housing Tax Credit business as positives. Keefe, Bruyette & Woods increased its price target to $102.00 from $92.00 while maintaining an Outperform rating, noting stronger pre-provision net revenue driven in part by elevated capital markets activity.
The quarterly results themselves showed QCR Holdings delivered fourth-quarter earnings per share of $2.21, ahead of the $1.99 analysts had been expecting. Quarterly revenue came in at $107.1 million versus anticipated revenue of $106.87 million. These results were accompanied by strategic initiatives the company has undertaken, which the reporting brokerage and other analysts cited as drivers behind investor optimism.
InvestingPro data included in the reporting notes that QCRH has paid dividends for 24 consecutive years, and assigns the company's current financial health a rating of "GOOD" based on comprehensive analysis. The same source lists QCRH among more than 1,400 U.S. equities for which Pro Research Reports are available.
Key points
- Raymond James raised its price target to $103 from $88 and maintained an Outperform rating on QCRH.
- QCR's recent performance benefited from strong swap fees, balance-sheet growth and a wider net interest margin; diluted EPS for the last twelve months was $7.49, with a P/E of 11.9.
- Other brokerages including Piper Sandler and Keefe, Bruyette & Woods also lifted price targets following the quarter, citing balance-sheet strength and elevated capital markets revenue.
Risks and uncertainties
- Higher expense levels tied to stronger revenues led Raymond James to lower EPS forecasts modestly, reflecting increased provision and operating expenses - a risk to near-term earnings.
- First-quarter seasonality remains a variable that can affect short-term trends, as analysts separated core momentum from expected Q1 patterns.
- Potential shifts in interest-rate dynamics will influence net interest margin prospects; while a declining rate backdrop could provide upside, the outcome depends on future rate movements.
Analyst price targets for QCR Holdings cited in the reporting span a range from $88 to $108. The company is trading near its 52-week high and continues to attract favorable commentary from several brokerages given its recent earnings and balance-sheet developments.